Yahoo Finance Those Who Purchased Big Rock Brewery (TSE:BR) Shares Five Years Ago Have A 69% Loss To Show For It
Generally speaking long term investing is the way to go. But unfortunately, some companies simply don't succeed. To wit, the Big Rock Brewery Inc. (TSE:BR) share price managed to fall 69% over five long years. That's not a lot of fun for true believers. And it's not just long term holders hurting, because the stock is down 29% in the last year. Shareholders have had an even rougher run lately, with the share price down 22% in the last 90 days.
See our latest analysis for Big Rock Brewery
Given that Big Rock Brewery 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.
Over five years, Big Rock Brewery grew its revenue at 5.7% per year. That's not a very high growth rate considering it doesn't make profits. This lacklustre growth has no doubt fueled the loss of 21% per year, in that time. We want to see an acceleration of revenue growth (or profits) before showing much interest in this one. However, it's possible too many in the market will ignore it, and there may be an opportunity if it starts to recover down the track.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Big Rock Brewery shareholders are down 29% for the year, but the market itself is up 3.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 21% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Big Rock Brewery better, we need to consider many other factors. For instance, we've identified 2 warning signs for Big Rock Brewery (1 is concerning) that you should be aware of.
We will like Big Rock Brewery 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.
