It hasn't been the best quarter for MicroVision, Inc. (NASDAQ:MVIS) shareholders, since the share price has fallen 14% in that time. But at least the stock is up over the last five years. Unfortunately its return of 93% is below the market return of 98%. Unfortunately not all shareholders will have held it for five years, so spare a thought for those caught in the 82% decline over the last three years: that's a long time to wait for profits.

The past week has proven to be lucrative for MicroVision investors, so let's see if fundamentals drove the company's five-year performance.

Because MicroVision made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years MicroVision saw its revenue shrink by 47% per year. Even though revenue hasn't increased, the stock actually gained 14%, per year, during the same period. To us that suggests that there probably isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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

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

Investors in MicroVision had a tough year, with a total loss of 7.6%, against a market gain of about 26%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 14%, 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. Case in point: We've spotted 2 warning signs for MicroVision you should be aware of, and 1 of them is a bit unpleasant.

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 American 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.