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If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term New Silkroutes Group Limited (SGX:BMT) shareholders have had a particularly rough ride in the last three year. Sadly for them, the share price is down 61% in that time. Furthermore, it's down 15% in about a quarter. That's not much fun for holders. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
View our latest analysis for New Silkroutes Group
New Silkroutes Group isn't a profitable company, so 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 expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over three years, New Silkroutes Group grew revenue at 43% per year. That's well above most other pre-profit companies. The share price has moved in quite the opposite direction, down 27% over that time, a bad result. It seems likely that the market is worried about the continual losses. When we see revenue growth, paired with a falling share price, we can't help wonder if there is an opportunity for those who are willing to dig deeper.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at New Silkroutes Group's financial health with this free report on its balance sheet.
What about the Total Shareholder Return (TSR)?
We've already covered New Silkroutes Group's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. We note that New Silkroutes Group's TSR, at -61% is higher than its share price return of -61%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.
A Different Perspective
While the broader market gained around 4.1% in the last year, New Silkroutes Group shareholders lost 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 13% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. Before spending more time on New Silkroutes Group it might be wise to click here to see if insiders have been buying or selling shares.