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Introducing Vitalharvest Freehold Trust (ASX:VTH), The Stock That Dropped 14% In The Last Year

Simply Wall St

Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. But if you buy individual stocks, you can do both better or worse than that. For example, the Vitalharvest Freehold Trust (ASX:VTH) share price is down 14% in the last year. That falls noticeably short of the market return of around 8.1%. Vitalharvest Freehold Trust may have better days ahead, of course; we've only looked at a one year period. The share price has dropped 15% in three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.

See our latest analysis for Vitalharvest Freehold Trust

Because Vitalharvest Freehold Trust is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In just one year Vitalharvest Freehold Trust saw its revenue fall by 30%. That looks pretty grim, at a glance. The stock price has languished lately, falling 14% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

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

ASX:VTH Income Statement, September 4th 2019
ASX:VTH Income Statement, September 4th 2019

If you are thinking of buying or selling Vitalharvest Freehold Trust stock, you should check out this FREE detailed report on its balance sheet.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Vitalharvest Freehold Trust the TSR over the last year was -9.0%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

Given that the market gained 8.1% in the last year, Vitalharvest Freehold Trust shareholders might be miffed that they lost 9.0% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Notably, the loss over the last year isn't as bad as the 15% drop in the last three months. So it seems like some holders have been dumping the stock of late - and that's not bullish. Importantly, we haven't analysed Vitalharvest Freehold Trust's dividend history. This free visual report on its dividends is a must-read if you're thinking of buying.

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 AU 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.