Alkaline Water (NASDAQ: WTER) shareholders suffered a 64% loss investing in the stock three years ago

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If you like to invest in stocks, you are bound to buy losers. But the long-term shareholders of La Compagnie des Eaux Alcalines Inc. (NASDAQ: WTER) have had an unfortunate run for the past three years. Unfortunately, they have withstood a 64% drop in the share price during this time. More recently, the share price fell another 19% in one month.

Now let’s take a look at the fundamentals of the business and see if the long-term return to shareholders matches the performance of the underlying business.

Check out our latest analysis for alkaline water

Alkaline Water has not been profitable over the past twelve months, we are unlikely to see a strong correlation between its share price and its earnings per share (EPS). We can say that income is our second best option. When a business is not making a profit, we generally expect good revenue growth. Indeed, rapid income growth can be easily extrapolated to expected profits, often of considerable size.

Over the past three years, Alkaline Water has seen its turnover increase by 21% per year, compound. It’s faster than most nonprofits. In contrast, the share price is down 18% compound, over three years – disappointing by most standards. It seems likely that the market is worried about continued losses. But a drop in stock prices of this magnitude could well signal that the market is too negative on the stock.

The graph below illustrates the evolution of earnings and income over time (reveal the exact values ​​by clicking on the image).

profit and revenue growth

If you are thinking of buying or selling alkaline water stocks, you should check this out FREE detailed report on its balance sheet.

A different perspective

Alkaline Water shareholders are up 21% over the year. But it was below the market average. The silver lining is that the gain was actually better than the average annual return of 4% per year over five years. This suggests that the business could improve over time. It is always interesting to follow the evolution of stock prices over the long term. But to better understand alkaline water, there are many other factors that we need to consider. To this end, you should inquire about the 3 warning signs we spotted with alkaline water (including 1 which is potentially serious).

If you are like me then you not want to miss it free list of growing companies that insiders buy.

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the US stock exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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