Al Ramz Corporation Investment and Development P.J.S.C's (DFM:ALRAMZ) Stock Price Has Reduced 60% In The Past Three Years

Investing in stocks inevitably means buying into some companies that perform poorly. Long term Al Ramz Corporation Investment and Development P.J.S.C. (DFM:ALRAMZ) shareholders know that all too well, since the share price is down considerably over three years. Regrettably, they have had to cope with a 60% drop in the share price over that period.

View our latest analysis for Al Ramz Corporation Investment and Development P.J.S.C

Given that Al Ramz Corporation Investment and Development P.J.S.C didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

In the last three years Al Ramz Corporation Investment and Development P.J.S.C saw its revenue shrink by 83% per year. That's definitely a weaker result than most pre-profit companies report. With no profits and falling revenue it is no surprise that investors have been dumping the stock, pushing the price down by 17% per year over that time. When revenue is dropping, and losses are still costing, and the share price sinking fast, it's fair to ask if something is remiss. It could be a while before the company repays long suffering shareholders with share price gains.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

The last twelve months weren't great for Al Ramz Corporation Investment and Development P.J.S.C shares, which cost holders 6.5%, while the market was up about 9.2%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Unfortunately, the longer term story isn't pretty, with investment losses running at 17% per year over three years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. It's always interesting to track share price performance over the longer term. But to understand Al Ramz Corporation Investment and Development P.J.S.C better, we need to consider many other factors. For instance, we've identified 4 warning signs for Al Ramz Corporation Investment and Development P.J.S.C (1 is a bit concerning) that you should be aware of.

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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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