Vivint智能家居(纽约证券交易所股票代码：VVNT)股东遭受进一步损失，本周股价下跌32%，使一年来的损失达到70%

Even the best stock pickers will make plenty of bad investments. Unfortunately, shareholders of Vivint Smart Home, Inc. (NYSE:VVNT) have suffered share price declines over the last year. To wit the share price is down 70% in that time. We wouldn't rush to judgement on Vivint Smart Home because we don't have a long term history to look at. On top of that, the share price is down 32% in the last week.

With the stock having lost 32% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

Check out our latest analysis for Vivint Smart Home

Vivint Smart Home wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Vivint Smart Home grew its revenue by 18% over the last year. That's definitely a respectable growth rate. Meanwhile, the share price tanked 70%, suggesting the market had much higher expectations. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. For us it's important to consider when you think a company will become profitable, if you're basing your valuation on revenue.

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

Take a more thorough look at Vivint Smart Home's financial health with this free report on its balance sheet.

A Different Perspective

Vivint Smart Home shareholders are down 70% for the year, even worse than the market loss of 16%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 30%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand Vivint Smart Home better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Vivint Smart Home (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.