Ranpak Holdings (NYSE:PACK investor three-year losses grow to 78% as the stock sheds US$60m this past week

As every investor would know, not every swing hits the sweet spot. But really big losses can really drag down an overall portfolio. So spare a thought for the long term shareholders of Ranpak Holdings Corp. (NYSE:PACK); the share price is down a whopping 78% in the last three years. That'd be enough to cause even the strongest minds some disquiet. Even worse, it's down 17% in about a month, which isn't fun at all.

Since Ranpak Holdings has shed US$60m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

View our latest analysis for Ranpak Holdings

Ranpak Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last three years, Ranpak Holdings' revenue dropped 3.8% per year. That is not a good result. Having said that the 21% annualized share price decline highlights the risk of investing in unprofitable companies. We're generally averse to companies with declining revenues, but we're not alone in that. Don't let a share price decline ruin your calm. You make better decisions when you're calm.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling Ranpak Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Ranpak Holdings shareholders have received a total shareholder return of 32% over the last year. There's no doubt those recent returns are much better than the TSR loss of 5% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. For instance, we've identified 1 warning sign for Ranpak Holdings that you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.