U.S. markets close in 3 hours 33 minutes
  • S&P 500

    3,916.58
    -7.10 (-0.18%)
     
  • Dow 30

    31,264.66
    -225.41 (-0.72%)
     
  • Nasdaq

    11,493.26
    +75.11 (+0.66%)
     
  • Russell 2000

    1,792.27
    +17.42 (+0.98%)
     
  • Crude Oil

    110.38
    +0.79 (+0.72%)
     
  • Gold

    1,840.80
    +24.90 (+1.37%)
     
  • Silver

    21.88
    +0.34 (+1.56%)
     
  • EUR/USD

    1.0594
    +0.0129 (+1.23%)
     
  • 10-Yr Bond

    2.8420
    -0.0440 (-1.52%)
     
  • GBP/USD

    1.2498
    +0.0156 (+1.26%)
     
  • USD/JPY

    127.6200
    -0.6770 (-0.53%)
     
  • BTC-USD

    30,256.54
    +1,373.84 (+4.76%)
     
  • CMC Crypto 200

    673.72
    +21.49 (+3.29%)
     
  • FTSE 100

    7,302.74
    -135.35 (-1.82%)
     
  • Nikkei 225

    26,402.84
    -508.36 (-1.89%)
     

Did You Manage To Avoid voxeljet's (NYSE:VJET) Devastating 84% Share Price Drop?

  • Oops!
    Something went wrong.
    Please try again later.
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We really hate to see fellow investors lose their hard-earned money. Imagine if you held voxeljet AG (NYSE:VJET) for half a decade as the share price tanked 84%. We also note that the stock has performed poorly over the last year, with the share price down 23%. It's down 2.0% in the last seven days.

We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

See our latest analysis for voxeljet

Given that voxeljet 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last half decade, voxeljet saw its revenue increase by 8.8% per year. That's a fairly respectable growth rate. So the stock price fall of 31% per year seems pretty steep. The truth is that the growth might be below expectations, and investors are probably worried about the continual losses.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

NYSE:VJET Income Statement, November 1st 2019
NYSE:VJET Income Statement, November 1st 2019

Take a more thorough look at voxeljet's financial health with this free report on its balance sheet.

A Different Perspective

Investors in voxeljet had a tough year, with a total loss of 23%, against a market gain of about 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 31% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.