If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term Bluegreen Vacations Holding Corporation (NYSE:BVH) shareholders have had a particularly rough ride in the last three year. So they might be feeling emotional about the 70% share price collapse, in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 48% lower in that time. It's down 3.2% in the last seven days.
View our latest analysis for Bluegreen Vacations Holding
Bluegreen Vacations Holding wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last three years, Bluegreen Vacations Holding's revenue dropped 3.8% per year. That is not a good result. The share price decline of 19% 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).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
What about the Total Shareholder Return (TSR)?
We've already covered Bluegreen Vacations Holding's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Bluegreen Vacations Holding's TSR, which was a 60% drop over the last 3 years, was not as bad as the share price return.
A Different Perspective
Investors in Bluegreen Vacations Holding had a tough year, with a total loss of 32%, against a market gain of about 24%. 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 0.6% 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 Bluegreen Vacations Holding better, we need to consider many other factors. Take risks, for example - Bluegreen Vacations Holding has 2 warning signs (and 1 which is a bit concerning) we think you should know about.