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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. A talented investor can beat the market with a diversified portfolio, but even then, some stocks will under-perform While the Unima 2000 Systemy Teleinformatyczne Spólka Akcyjna (WSE:U2K) share price is down 13% over half a decade, the total return to shareholders (which includes dividends) was 12%. That's better than the market which returned 3.9% over the same time. It's down 3.2% in the last seven days.
Check out our latest analysis for Unima 2000 Systemy Teleinformatyczne Spólka Akcyjna
While Unima 2000 Systemy Teleinformatyczne Spólka Akcyjna made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.
Over five years, Unima 2000 Systemy Teleinformatyczne Spólka Akcyjna grew its revenue at 7.2% per year. That's a fairly respectable growth rate. We doubt many shareholders are ok with the fact the share price has fallen 2.7% each year for half a decade. Those who bought back then clearly believed in stronger growth - and maybe even profits. There is always a big risk of losing money yourself when you buy shares in a company that loses money.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
This free interactive report on Unima 2000 Systemy Teleinformatyczne Spólka Akcyjna's balance sheet strength is a great place to start, if you want to investigate the stock further.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Unima 2000 Systemy Teleinformatyczne Spólka Akcyjna's TSR for the last 5 years was 12%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.