Yahoo Finance Imagine Owning Brattle Street Investment (CVE:BRTL) While The Price Tanked 61%
Brattle Street Investment Corp. (CVE:BRTL) shareholders should be happy to see the share price up 11% in the last month. But over the last three years we've seen a quite serious decline. Tragically, the share price declined 61% in that time. So it is really good to see an improvement. Perhaps the company has turned over a new leaf.
View our latest analysis for Brattle Street Investment
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During five years of share price growth, Brattle Street Investment moved from a loss to profitability. We would usually expect to see the share price rise as a result. So given the share price is down it's worth checking some other metrics too.
Arguably the revenue decline of 22% per year has people thinking Brattle Street Investment is shrinking. After all, if revenue keeps shrinking, it may be difficult to find earnings growth in the future.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at Brattle Street Investment's financial health with this free report on its balance sheet.
A Different Perspective
With a loss of 16% in the last year, Brattle Street Investment's returns haven't been too far from the market return of -16%. The loss of 27% per year, over the last three years, is nothing to boast about. While the losses seem to be slowing, that's not really particularly comforting. 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 4 warning signs for Brattle Street Investment (1 is significant!) that you should be aware of before investing here.
We will like Brattle Street Investment better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.
