BrightView Holdings (NYSE:BV) investors are sitting on a loss of 58% if they invested a year ago
The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of BrightView Holdings, Inc. (NYSE:BV) have suffered share price declines over the last year. The share price has slid 58% in that time. Even if you look out three years, the returns are still disappointing, with the share price down47% in that time. Shareholders have had an even rougher run lately, with the share price down 30% in the last 90 days.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
Check out our latest analysis for BrightView Holdings
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Unfortunately BrightView Holdings reported an EPS drop of 81% for the last year. This fall in the EPS is significantly worse than the 58% the share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster. With a P/E ratio of 64.25, it's fair to say the market sees an EPS rebound on the cards.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on BrightView Holdings' earnings, revenue and cash flow.
A Different Perspective
The last twelve months weren't great for BrightView Holdings shares, which performed worse than the market, costing holders 58%. Meanwhile, the broader market slid about 6.1%, likely weighing on the stock. Shareholders have lost 14% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for BrightView Holdings (of which 1 makes us a bit uncomfortable!) you should know about.
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 American exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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