Those who invested in VOXX International (NASDAQ:VOXX) five years ago are up 73%
While VOXX International Corporation (NASDAQ:VOXX) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 29% in the last quarter. But the silver lining is the stock is up over five years. Unfortunately its return of 73% is below the market return of 94%. Unfortunately not all shareholders will have held it for five years, so spare a thought for those caught in the 65% decline over the last three years: that's a long time to wait for profits.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for VOXX International
Given that VOXX International 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 5 years VOXX International saw its revenue grow at 6.4% per year. That's a pretty good long term growth rate. While the share price has gained 12% per year for five years, that's hardly amazing considering the market also rose. Arguably, that means, the market (previously) expected stronger growth from the company.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling VOXX International stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While the broader market gained around 32% in the last year, VOXX International shareholders lost 31%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 12% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand VOXX International better, we need to consider many other factors. Take risks, for example - VOXX International has 2 warning signs we think you should be aware of.
Of course VOXX International may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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.
