Fletcher Building Limited (NZSE:FBU) has been a disappointing investment for many shareholders over the past few years, with the share price down 47% in the last three years. This significant decline is in stark contrast to the overall market, which has only fallen around 8.7% during the same period. With the stock also down 19% in just the last quarter, it’s no wonder that holders are feeling the pinch.
Despite the poor performance of the stock, it’s important to look at the underlying fundamentals to see if there is any hope for a turnaround. While the share price has dropped, Fletcher Building has actually moved from a loss to profitability over the past five years. This positive development is surprising given the stock’s decline, but it’s worth delving deeper into other metrics to understand the full picture.
One encouraging sign is that revenue has grown at a 3.8% annual rate over the past three years, which suggests that there may still be potential for growth. Additionally, insiders have been making significant purchases in the company, indicating confidence in its future prospects.
It’s also important to consider the total shareholder return (TSR), which takes into account dividends and other factors. While Fletcher Building’s TSR has been a 36% drop over the last three years, it is not as bad as the share price return alone.
Overall, while the stock has underperformed the market and shareholders have faced losses, there may still be hope for a turnaround. It’s essential for investors to conduct thorough research and consider all factors before making any decisions. With 4 warning signs identified in the investment analysis, it’s crucial to proceed with caution.
As always, it’s important to remember that this article is general in nature and not intended as financial advice. Investors should conduct their own research and consider their individual circumstances before making any investment decisions.
