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Jet Airways (India) (NSE:JETAIRWAYS) shareholders lost 78% as shares fell 14% last week

It is undoubtedly positive to see that the Jet Airways (India) Limited (NSE: JETAIRWAYS) the stock price has gained some 37% over the past three months. But that doesn’t change the fact that returns over the past half-decade have been stomach-churning. Indeed, the stock price fell 78% during this period. It’s true that the recent rebound could signal that the company is turning over a new leaf, but we’re not so sure. The real question is whether the company can leave its past behind and improve in the years to come.

Given that the past week has been tough for shareholders, let’s take a look at the fundamentals and see what we can learn.

See our latest analysis for Jet Airways (India)

Jet Airways (India) has not been profitable for the last twelve months, we are unlikely to see a strong correlation between its share price and its earnings per share (EPS). Income is arguably our second best option. When a business is not making a profit, you generally expect to see good revenue growth. As you can imagine, rapid revenue growth, when sustained, often results in rapid profit growth.

For half a decade, Jet Airways (India) has reduced its revenue for the last twelve months by 29% for each year. This is certainly a lower result than most nonprofits report. It is therefore not so strange that the share price fell by 12% per year during this period. This type of price performance makes us very suspicious, especially when combined with declining revenues. Ironically, this behavior could create an opportunity for the contrarian investor – but only if there are good reasons to predict a better future.

The company’s revenues and profits (over time) are shown in the image below (click to see exact figures).

NSEI: JETAIRWAYS Earnings and Revenue Growth as of June 1, 2022

Take a closer look at the financial health of Jet Airways (India) with this free report on its balance sheet.

A different perspective

Jet Airways (India) provided a TSR of 7.7% over the last twelve months. But this yield is lower than the market. On the plus side, it’s still a gain, and it’s certainly better than the roughly 12% annual loss for half a decade. So it could be a sign that the company has changed course. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. Take risks, for example – Jet Airways (India) has 3 warning signs (and 1 that doesn’t sit well with us) we think you should be aware of.

If you like buying stocks alongside management then you might love this free list of companies. (Hint: insiders bought them).

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

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