Procaps Group (NASDAQ:PROC) shareholders have endured a 18% loss from investing in the stock a year ago
Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. That downside risk was realized by Procaps Group, S.A. (NASDAQ:PROC) shareholders over the last year, as the share price declined 18%. That's well below the market decline of 0.6%. Because Procaps Group hasn't been listed for many years, the market is still learning about how the business performs.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
Check out our latest analysis for Procaps Group
Because Procaps Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Procaps Group grew its revenue by 22% over the last year. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 18%. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Procaps Group's financial health with this free report on its balance sheet.
A Different Perspective
We doubt Procaps Group shareholders are happy with the loss of 18% over twelve months. That falls short of the market, which lost 0.6%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 9.4% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
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.
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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.