Yahoo Finance Did You Manage To Avoid Vapiano's (FRA:VAO) Devastating 74% Share Price Drop?
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Vapiano SE (FRA:VAO) shareholders should be happy to see the share price up 17% in the last month. But that doesn't change the fact that the returns over the last year have been stomach churning. Indeed, the share price is down a whopping 74% in the last year. It's not uncommon to see a bounce after a drop like that. The important thing is whether the company can turn it around, longer term.
View our latest analysis for Vapiano
Vapiano isn't a profitable company, so 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last twelve months, Vapiano increased its revenue by 15%. We think that is pretty nice growth. However, it seems like the market wanted more, since the share price is down 74%. One fear might be that the company might be losing too much money and will need to raise more. We'd posit that the future looks challenging, given the disconnect between revenue growth and the share price.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
This free interactive report on Vapiano's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We doubt Vapiano shareholders are happy with the loss of 74% over twelve months. That falls short of the market, which lost 4.0%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 4.0% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
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 DE exchanges.
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.
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.
