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Generally speaking long term investing is the way to go. But along the way some stocks are going to perform badly. For example the Shougang Concord Century Holdings Limited (HKG:103) share price dropped 56% over five years. That's not a lot of fun for true believers.
See our latest analysis for Shougang Concord Century Holdings
Shougang Concord Century 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last half decade, Shougang Concord Century Holdings saw its revenue increase by 5.5% per year. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 15% for the last five years. We want to see an acceleration of revenue growth (or profits) before showing much interest in this one. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term).
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Shougang Concord Century Holdings's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We're pleased to report that Shougang Concord Century Holdings shareholders have received a total shareholder return of 5.1% over one year. There's no doubt those recent returns are much better than the TSR loss of 15% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. If you would like to research Shougang Concord Century Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
We will like Shougang Concord Century Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.