Investors Who Bought Ras Al Khaimah Cement Company P.S.C (ADX:RAKCC) Shares Three Years Ago Are Now Up 27%

By buying an index fund, investors can approximate the average market return. But if you choose individual stocks with prowess, you can make superior returns. For example, the Ras Al Khaimah Cement Company P.S.C. (ADX:RAKCC) share price is up 27% in the last three years, clearly besting the market decline of around 1.7% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 9.6%.

Check out our latest analysis for Ras Al Khaimah Cement Company P.S.C

Because Ras Al Khaimah Cement Company P.S.C 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 expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Ras Al Khaimah Cement Company P.S.C actually saw its revenue drop by 9.4% per year over three years. Despite the lack of revenue growth, the stock has returned 8%, compound, over three years. Unless the company is going to make profits soon, we would be pretty cautious about it.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on Ras Al Khaimah Cement Company P.S.C's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Ras Al Khaimah Cement Company P.S.C provided a TSR of 9.6% over the year. That's fairly close to the broader market return. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 0.4% over the last five years. While 'turnarounds seldom turn' there are green shoots for Ras Al Khaimah Cement Company P.S.C. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Ras Al Khaimah Cement Company P.S.C that you should be aware of before investing here.

We will like Ras Al Khaimah Cement Company P.S.C 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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