Investors one-year losses grow to 48% as the stock sheds 26m this past week – Simply Wall St

Investors can approximate the average market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. For example, the Hoffmann Green Cement Technologies Socit anonyme (EPA:ALHGR) share price is down 48% in the last year. That's well below the market decline of 10%. Because Hoffmann Green Cement Technologies Socit anonyme hasn't been listed for many years, the market is still learning about how the business performs. The falls have accelerated recently, with the share price down 23% in the last three months. Of course, this share price action may well have been influenced by the 11% decline in the broader market, throughout the period.

With the stock having lost 12% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for Hoffmann Green Cement Technologies Socit anonyme

Hoffmann Green Cement Technologies Socit anonyme 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 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 year Hoffmann Green Cement Technologies Socit anonyme saw its revenue grow by 372%. That's a strong result which is better than most other loss making companies. Given the revenue growth, the share price drop of 48% seems quite harsh. Our sympathies to shareholders who are now underwater. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Hoffmann Green Cement Technologies Socit anonyme's financial health with this free report on its balance sheet.

Hoffmann Green Cement Technologies Socit anonyme shareholders are down 48% for the year, even worse than the market loss of 10%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 23%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 4 warning signs for Hoffmann Green Cement Technologies Socit anonyme that you should be aware of.

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 FR 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.

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Investors one-year losses grow to 48% as the stock sheds 26m this past week - Simply Wall St