Young's Brewery Investors Face 45% Loss: Time to Reassess?

Ladies and Gentlemen, listen up! If you invested in Young & Co.'s Brewery, P.L.C. (LON:YNGA) three years ago, you're sitting on a loss of 45%. OUCH! That's a brutal hit, and it's time to reassess what's going on with this stock. Let's dive in and see if there's a silver lining or if it's time to cut your losses.

First things first, the numbers don't lie. Young's Brewery has seen its share price plummet 47% over the past three years, while the broader market has enjoyed a 17% return. That's a massive underperformance, and it's got investors scratching their heads. The stock has been on a rollercoaster ride, with a 23% drop in the last year and a 15% decline in the last three months. The market is not loving this stock right now, and investor sentiment is at an all-time low.

But here's where it gets interesting. Despite the share price freefall, Young's Brewery has actually seen a 19% increase in revenue over the past three years. That's right, folks! The company is making more money, but the stock price is tanking. It's like the market is saying, "Thanks for the revenue growth, but no thanks."

So, what's the deal? Why the disconnect between revenue growth and share price performance? Well, it could be a number of things. Maybe investors are worried about the company's long-term growth prospects. Maybe they're concerned about market conditions or industry trends. Or maybe they're just having a bad day. Who knows?

But here's what we do know: Young's Brewery has transitioned from a loss to profitability within the last five years. That's a big deal, and it's generally considered a positive development. So why the share price decline? It's a mystery, folks. A mystery wrapped in an enigma.

Now, let's talk about the total shareholder return (TSR). Over the past three years, Young's Brewery's TSR was -44%, which includes the value of dividends reinvested. That's a big hit, but it's important to note that dividends have boosted the total shareholder return. So, while the share price has been tanking, investors have at least been getting some cash back in their pockets.

But here's the million-dollar question: Is Young's Brewery a buy, a sell, or a hold? Well, that depends on your risk tolerance and investment goals. The stock is currently trading around 17.58% above its intrinsic value, which means it's fairly valued at the moment. But with a high beta, the price can sink lower, giving us an opportunity to buy later on.

So, what's the verdict? Should you buy, sell, or hold Young's Brewery? Well, that's up to you, folks. But one thing's for sure: This stock is a rollercoaster ride, and it's not for the faint of heart. So, buckle up and get ready for the wild ride ahead!