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The truth is that if you invest for long enough, you're going to end up with some losing stocks. But the last three years have been particularly tough on longer term InCity Immobilien AG (ETR:IC8) shareholders. So they might be feeling emotional about the 56% share price collapse, in that time. And over the last year the share price fell 50%, so we doubt many shareholders are delighted. Shareholders have had an even rougher run lately, with the share price down 31% in the last 90 days.
Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.
Check out our latest analysis for InCity Immobilien
Because InCity Immobilien made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years, InCity Immobilien saw its revenue grow by 69% per year, compound. That is faster than most pre-profit companies. The share price has moved in quite the opposite direction, down 16% over that time, a bad result. This could mean hype has come out of the stock because the losses are concerning investors. But a share price drop of that magnitude could well signal that the market is overly negative on the stock.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at InCity Immobilien's financial health with this free report on its balance sheet.
A Different Perspective
InCity Immobilien shareholders are down 50% for the year, but the market itself is up 10%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. 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. It's always interesting to track share price performance over the longer term. But to understand InCity Immobilien better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for InCity Immobilien (of which 1 is potentially serious!) you should know about.