Yahoo Finance Imagine Owning HolidayCheck Group (ETR:HOC) And Wondering If The 38% Share Price Slide Is Justified
Ideally, your overall portfolio should beat the market average. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in HolidayCheck Group AG (ETR:HOC), since the last five years saw the share price fall 38%. We also note that the stock has performed poorly over the last year, with the share price down 31%. Shareholders have had an even rougher run lately, with the share price down 16% in the last 90 days.
See our latest analysis for HolidayCheck Group
HolidayCheck Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last half decade, HolidayCheck Group saw its revenue increase by 7.9% per year. That's a pretty good rate for a long time period. We doubt many shareholders are ok with the fact the share price has fallen 9.0% each year for half a decade. Clearly, the expectations from back then have not been satisfied. There is always a big risk of losing money yourself when you buy shares in a company that loses money.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on HolidayCheck Group's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We regret to report that HolidayCheck Group shareholders are down 30% for the year (even including dividends) . Unfortunately, that's worse than the broader market decline of 2.3%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 8.7% 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. You could get a better understanding of HolidayCheck Group's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
But note: HolidayCheck Group 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.
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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.
