Including dividends, the All Ordinaries index has provided a return of approximately 6.5% over the last 12 months.
Unfortunately, not all shares on the index have fared as well. In fact, some have underperformed the index by a significant margin.
Three shares that have been beaten down over the last 12 months are listed below. Here's why they have underperformed:
The BWX Ltd (ASX: BWX) share price is down 59% over the last 12 months. The developer, manufacturer, distributor, and marketer of branded skin and hair care products has come under pressure over the last 12 months after a sudden deterioration in the sales of its key Sukin brand and the collapse of a takeover approach. Things have been gradually improving throughout FY 2019, but I'm not completely convinced that the company is over the worst of its issues just yet. In light of this, I intend to stay clear of its shares for the time being and wait for its full year results to see how things are going.
The Challenger Ltd (ASX: CGF) share price has tumbled a sizeable 36% since this time last year. The annuities company's shares were sold off after the release of a disappointing half year result earlier this year. In the first half of FY 2019 Challenger generated revenue of $893.5 million and net profit after tax of $6.1 million. This was a decline of 20.8% and 96.9%, respectively, on the prior corresponding period. Things haven't improved greatly since then, with the company reporting total third quarter annuity sales of $662 million. This was a 13% decline on the prior corresponding quarter and driven largely by Japanese annuity sales collapsing nearly in half.
The Wattle Health Australia Ltd (ASX: WHA) share price has lost 67% of its value over the last 12 months. Investors have been heading to the exits in their droves after the infant formula and healthy foods company's sales failed to justify its lofty market capitalisation. In addition to this, the company has raised funds through a dilutive capital raising and taken on significant debt. Despite this sizeable decline, I don't think its shares are particularly cheap and would suggest investors keep clear of the company until it is generating meaningful sales. In the March quarter Wattle Health reported cash receipts of just $630k for the first nine months of FY 2019.
