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Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien (ETR:BVB) shareholders have endured a 57% loss from investing in the stock three years ago

The truth is that if you invest for long enough, you're going to end up with some losing stocks. But the long term shareholders of Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (ETR:BVB) have had an unfortunate run in the last three years. Unfortunately, they have held through a 58% decline in the share price in that time.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien

Given that Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last three years, Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien's revenue dropped 1.5% per year. That's not what investors generally want to see. The share price decline of 16% compound, over three years, is understandable given the company doesn't have profits to boast of, and revenue is moving in the wrong direction. Having said that, if growth is coming in the future, now may be the low ebb for the company. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien's financial health with this free report on its balance sheet.

A Different Perspective

We regret to report that Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien shareholders are down 18% for the year. Unfortunately, that's worse than the broader market decline of 15%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. To that end, you should be aware of the 1 warning sign we've spotted with Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien .

But note: Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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