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Some Box (NYSE:BOX) Shareholders Are Down 29%

Simply Wall St

Over the last month the Box, Inc. (NYSE:BOX) has been much stronger than before, rebounding by 35%. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 29% in the last year, well below the market return.

See our latest analysis for Box

Given that Box 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Box grew its revenue by 18% over the last year. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 29%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.

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

NYSE:BOX Income Statement, September 13th 2019

Box is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for Box in this interactive graph of future profit estimates.

A Different Perspective

Box shareholders are down 29% for the year, but the broader market is up 4.1%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Fortunately the longer term story is brighter, with total returns averaging about 6.1% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. If you would like to research Box in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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