We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. For example, after five long years the Top Glove Corporation Bhd. (KLSE:TOPGLOV) share price is a whole 59% lower. We certainly feel for shareholders who bought near the top. The falls have accelerated recently, with the share price down 36% in the last three months.

If the past week is anything to go by, investor sentiment for Top Glove Corporation Bhd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

See our latest analysis for Top Glove Corporation Bhd

Because Top Glove Corporation Bhd made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last five years Top Glove Corporation Bhd saw its revenue shrink by 26% per year. That's definitely a weaker result than most pre-profit companies report. Arguably, the market has responded appropriately to this business performance by sending the share price down 10% (annualized) in the same time period. It's fair to say most investors don't like to invest in loss making companies with falling revenue. You'd want to research this company pretty thoroughly before buying, it looks a bit too risky for us.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So we recommend checking out this free report showing consensus forecasts

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between Top Glove Corporation Bhd's total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Top Glove Corporation Bhd's TSR of was a loss of 52% for the 5 years. That wasn't as bad as its share price return, because it has paid dividends.