雅虎香港財經 Investors in Highlight Event and Entertainment (VTX:HLEE) from three years ago are still down 74%, even after 17% gain this past week
This week we saw the Highlight Event and Entertainment AG (VTX:HLEE) share price climb by 17%. But that is meagre solace in the face of the shocking decline over three years. To wit, the share price sky-dived 75% in that time. So it's about time shareholders saw some gains. But the more important question is whether the underlying business can justify a higher price still.
While the last three years has been tough for Highlight Event and Entertainment shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.
See our latest analysis for Highlight Event and Entertainment
Given that Highlight Event and Entertainment 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last three years, Highlight Event and Entertainment's revenue dropped 2.2% per year. That is not a good result. The share price fall of 21% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue. This business clearly needs to grow revenues if it is to perform as investors hope. Don't let a share price decline ruin your calm. You make better decisions when you're calm.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling Highlight Event and Entertainment stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Investors in Highlight Event and Entertainment had a tough year, with a total loss of 43%, against a market gain of about 6.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 10% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Highlight Event and Entertainment better, we need to consider many other factors. Even so, be aware that Highlight Event and Entertainment is showing 3 warning signs in our investment analysis , and 2 of those shouldn't be ignored...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Swiss 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
