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Every investor on earth makes bad calls sometimes. But really bad investments should be rare. So take a moment to sympathize with the long term shareholders of Pak Wing Group (Holdings) Limited (HKG:8316), who have seen the share price tank a massive 85% over a three year period. That'd be enough to cause even the strongest minds some disquiet. And the ride hasn't got any smoother in recent times over the last year, with the price 79% lower in that time. Unfortunately the share price momentum is still quite negative, with prices down 33% in thirty days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
See our latest analysis for Pak Wing Group (Holdings)
Pak Wing Group (Holdings) isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last three years, Pak Wing Group (Holdings)'s revenue dropped 11% per year. That's not what investors generally want to see. Having said that the 46% annualized share price decline highlights the risk of investing in unprofitable companies. This business clearly needs to grow revenues if it is to perform as investors hope. There's no more than a snowball's chance in hell that share price will head back to its old highs, in the short term.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Pak Wing Group (Holdings)'s earnings, revenue and cash flow.
A Different Perspective
The last twelve months weren't great for Pak Wing Group (Holdings) shares, which performed worse than the market, costing holders 79%. Meanwhile, the broader market slid about 3.5%, likely weighing on the stock. The three-year loss of 46% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.