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It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Investors in Sensirion Holding AG (VTX:SENS) have tasted that bitter downside in the last year, as the share price dropped 16%. That's disappointing when you consider the market returned 9.8%. Sensirion Holding may have better days ahead, of course; we've only looked at a one year period. The share price has dropped 24% in three months.
See our latest analysis for Sensirion Holding
Given that Sensirion Holding 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 expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last twelve months, Sensirion Holding increased its revenue by 18%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 16%. This implies the market was expecting better growth. But if revenue keeps growing, then at a certain point the share price would likely follow.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
Balance sheet strength is crucual. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
While Sensirion Holding shareholders are down 16% for the year, the market itself is up 9.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's worth noting that the last three months did the real damage, with a 24% decline. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
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 CH exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.