Gulf Pharmaceutical Industries P.S.C's(ADX:JULPHAR) Share Price Is Down 59% Over The Past Five Years.

Gulf Pharmaceutical Industries P.S.C. (ADX:JULPHAR) shareholders should be happy to see the share price up 12% in the last month. But over the last half decade, the stock has not performed well. In fact, the share price is down 59%, which falls well short of the return you could get by buying an index fund.

Check out our latest analysis for Gulf Pharmaceutical Industries P.S.C

Gulf Pharmaceutical Industries P.S.C 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 Gulf Pharmaceutical Industries P.S.C reduced its trailing twelve month revenue by 29% for each year. That puts it in an unattractive cohort, to put it mildly. 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 how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Gulf Pharmaceutical Industries P.S.C stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Gulf Pharmaceutical Industries P.S.C'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. Its history of dividend payouts mean that Gulf Pharmaceutical Industries P.S.C's TSR, which was a 47% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

Gulf Pharmaceutical Industries P.S.C provided a TSR of 6.4% over the last twelve months. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 8% per year, over five years. So this might be a sign the business has turned its fortunes around. 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. Even so, be aware that Gulf Pharmaceutical Industries P.S.C is showing 3 warning signs in our investment analysis , you should know about...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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