Even after rising 13% this past week, Blue Apron Holdings (NYSE:APRN) shareholders are still down 62% over the past three years

By
Simply Wall St
Published
January 14, 2022
NYSE:APRN
Source: Shutterstock

Blue Apron Holdings, Inc. (NYSE:APRN) shareholders should be happy to see the share price up 13% in the last week. But that doesn't change the fact that the returns over the last three years have been disappointing. Regrettably, the share price slid 62% in that period. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.

While the stock has risen 13% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

Check out our latest analysis for Blue Apron Holdings

Because Blue Apron Holdings made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years Blue Apron Holdings saw its revenue shrink by 14% per year. That is not a good result. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 17% per year. Of course, it's the future that will determine whether today's price is a good one. We'd be pretty wary of this one until it makes a profit, because we don't specialize in finding turnaround situations.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
NYSE:APRN Earnings and Revenue Growth January 14th 2022

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Blue Apron Holdings will earn in the future (free profit forecasts).

A Different Perspective

Blue Apron Holdings shareholders are up 0.7% for the year. While you don't go broke making a profit, this return was actually lower than the average market return of about 14%. The silver lining is that the recent rise is far preferable to the annual loss of 17% that shareholders have suffered over the last three years. It could well be that the business is stabilizing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Blue Apron Holdings (of which 1 is concerning!) you should know about.

Blue Apron Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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