Investors in VTEX (NYSE:VTEX) from a year ago are still down 65%, even after 9.6% gain this past week

Investing in stocks comes with the risk that the share price will fall. Anyone who held VTEX (NYSE:VTEX) over the last year knows what a loser feels like. To wit the share price is down 65% in that time. We wouldn't rush to judgement on VTEX because we don't have a long term history to look at. But it's up 9.6% in the last week.

While the stock has risen 9.6% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for VTEX

VTEX isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

VTEX grew its revenue by 27% over the last year. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 65% in that time. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

VTEX shareholders are down 65% for the year, even worse than the market loss of 22%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 1.4% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). You could get a better understanding of VTEX's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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.

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