Those Who Purchased Biocartis Group (EBR:BCART) Shares A Year Ago Have A 47% Loss To Show For It

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It's easy to match the overall 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. Unfortunately the Biocartis Group NV (EBR:BCART) share price slid 47% over twelve months. That's well bellow the market return of 16%. We note that it has not been easy for shareholders over three years, either; the share price is down 36% in that time. The falls have accelerated recently, with the share price down 18% in the last three months.

See our latest analysis for Biocartis Group

Given that Biocartis Group 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Biocartis Group grew its revenue by 15% over the last year. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 47%. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

ENXTBR:BCART Income Statement, December 7th 2019
ENXTBR:BCART Income Statement, December 7th 2019

If you are thinking of buying or selling Biocartis Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Biocartis Group shareholders are down 47% for the year, but the broader market is up 16%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 14% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on BE exchanges.

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.

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. Thank you for reading.

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