Byron Energy's (ASX:BYE) Stock Price Has Reduced 69% In The Past Three Years

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term Byron Energy Limited (ASX:BYE) shareholders have had a particularly rough ride in the last three year. Regrettably, they have had to cope with a 69% drop in the share price over that period. Furthermore, it's down 22% in about a quarter. That's not much fun for holders. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.

Check out our latest analysis for Byron Energy

While Byron Energy made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over three years, Byron Energy grew revenue at 20% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 19% compounded, over three years. The market must have had really high expectations to be disappointed with this progress. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth

This free interactive report on Byron Energy's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Byron Energy shareholders are up 14% for the year. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 0.9% over half a decade This suggests the company might be improving over time. 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 example, we've discovered 3 warning signs for Byron Energy (1 doesn't sit too well with us!) that you should be aware of before investing here.

But note: Byron Energy 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 AU exchanges.

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. 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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