Al Waha Capital PJSC (ADX:WAHA) Has Returned Negative 30% To Its Shareholders In The Past Five Years

While it may not be enough for some shareholders, we think it is good to see the Al Waha Capital PJSC (ADX:WAHA) share price up 16% in a single quarter. But over the last half decade, the stock has not performed well. After all, the share price is down 50% in that time, significantly under-performing the market.

View our latest analysis for Al Waha Capital PJSC

Al Waha Capital PJSC 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over half a decade Al Waha Capital PJSC reduced its trailing twelve month revenue by 1.1% for each year. While far from catastrophic that is not good. The stock hasn't done well for shareholders in the last five years, falling 8%, annualized. Unfortunately, though, it makes sense given the lack of either profits or revenue growth. Without profits, its hard to see how shareholders win if the revenue keeps falling.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

This free interactive report on Al Waha Capital PJSC's balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Al Waha Capital PJSC's total shareholder return (TSR) and its share price change, which we've covered above. 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. Al Waha Capital PJSC's TSR of was a loss of 30% for the 5 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

It's good to see that Al Waha Capital PJSC has rewarded shareholders with a total shareholder return of 21% in the last twelve months. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Al Waha Capital PJSC better, we need to consider many other factors. Even so, be aware that Al Waha Capital PJSC is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

We will like Al Waha Capital PJSC 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 AE exchanges.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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