Cineverse (NASDAQ:CNVS shareholders incur further losses as stock declines 10% this week, taking three-year losses to 77%

Every investor on earth makes bad calls sometimes. But really bad investments should be rare. So spare a thought for the long term shareholders of Cineverse Corp. (NASDAQ:CNVS); the share price is down a whopping 77% in the last three years. That would be a disturbing experience. Furthermore, it's down 54% in about a quarter. That's not much fun for holders.

Since Cineverse has shed US$5.7m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

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There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Cineverse became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. So it's worth looking at other metrics to try to understand the share price move.

Revenue is actually up 4.3% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating Cineverse further; while we may be missing something on this analysis, there might also be an opportunity.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

It is of course excellent to see how Cineverse has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Cineverse stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Cineverse shareholders gained a total return of 4.7% during the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 12% per year, over five 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. Even so, be aware that Cineverse is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...

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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.