We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. For example the Boustead Heavy Industries Corporation Berhad (KLSE:BHIC) share price dropped 61% over five years. That is extremely sub-optimal, to say the least.
Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.
View our latest analysis for Boustead Heavy Industries Corporation Berhad
Boustead Heavy Industries Corporation Berhad wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last five years Boustead Heavy Industries Corporation Berhad saw its revenue shrink by 6.1% per year. While far from catastrophic that is not good. With neither profit nor revenue growth, the loss of 10% per year doesn't really surprise us. The chance of imminent investor enthusiasm for this stock seems slimmer than Louise Brooks. Not that many investors like to invest in companies that are losing money and not growing revenue.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Boustead Heavy Industries Corporation Berhad shareholders gained a total return of 17% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 10% endured over half a decade. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Boustead Heavy Industries Corporation Berhad better, we need to consider many other factors. Even so, be aware that Boustead Heavy Industries Corporation Berhad is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
Of course Boustead Heavy Industries Corporation Berhad may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.