Stock Analysis

Would Shareholders Who Purchased Eshraq Investments PJSC's (ADX:ESHRAQ) Stock Three Years Be Happy With The Share price Today?

ADX:ESHRAQ
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The truth is that if you invest for long enough, you're going to end up with some losing stocks. But long term Eshraq Investments PJSC (ADX:ESHRAQ) shareholders have had a particularly rough ride in the last three year. Sadly for them, the share price is down 53% in that time. The falls have accelerated recently, with the share price down 14% in the last three months.

Check out our latest analysis for Eshraq Investments PJSC

Eshraq Investments PJSC wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years Eshraq Investments PJSC saw its revenue shrink by 3.9% per year. That is not a good result. The share price decline of 15% compound, over three years, is understandable given the company doesn't have profits to boast of, and revenue is moving in the wrong direction. Of course, it's the future that will determine whether today's price is a good one. We'd be pretty wary of this one until it makes a profit, because we don't specialize in finding turnaround situations.

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

earnings-and-revenue-growth
ADX:ESHRAQ Earnings and Revenue Growth December 10th 2020

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

A Different Perspective

Investors in Eshraq Investments PJSC had a tough year, with a total loss of 6.8%, against a market gain of about 9.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 6% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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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Valuation is complex, but we're here to simplify it.

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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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