$维视图像(MVIS.US)$ shareholders might be concerned after seeing the share price drop 15% in the last quarter.    But over three years the performance has been really wonderful.  Indeed, the share price is up a whopping 322% in that time.  Arguably, the recent fall is to be expected after such a strong rise.  The only way to form a view of whether the current price is justified is to consider the merits of the business itself.

Since the stock has added US$69m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Check out our latest analysis for MicroVision

MicroVision 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.  Shareholders of unprofitable companies usually expect strong revenue growth.  As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

MicroVision actually saw its revenue drop by 70% per year over three years.   This is in stark contrast to the strong share price growth of 62%, compound, per year.  There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies.  So there is a serious possibility that some holders are counting their chickens before they hatch.

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

A Different Perspective

While the broader market lost about 10% in the twelve months, MicroVision shareholders did even worse, losing 78%.  However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity.     Longer term investors wouldn't be so upset, since they would have made 8%, each year, over five years.  If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering.        It's always interesting to track share price performance over the longer term. But to understand MicroVision better, we need to consider many other factors.   For example, we've discovered 3 warning signs for MicroVision that you should be aware of before investing here.

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.

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