Currency Exchange International (TSE:CXI) adds US$14m to market cap in the past 7 days, though investors from five years ago are still down 34%

Currency Exchange International, Corp. (TSE:CXI) shareholders should be happy to see the share price up 17% in the last week. But if you look at the last five years the returns have not been good. You would have done a lot better buying an index fund, since the stock has dropped 34% in that half decade.

While the last five years has been tough for Currency Exchange International shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

View our latest analysis for Currency Exchange International

Currency Exchange International isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 five years Currency Exchange International saw its revenue shrink by 2.4% per year. While far from catastrophic that is not good. The share price decline at a rate of 6% per year is disappointing. But it doesn't surprise given the falling revenue. Without profits, its hard to see how shareholders win if the revenue keeps falling.

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

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Currency Exchange International stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We're pleased to report that Currency Exchange International shareholders have received a total shareholder return of 26% over one year. That certainly beats the loss of about 6% per year over the last half decade. 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 Currency Exchange International better, we need to consider many other factors. Even so, be aware that Currency Exchange International is showing 1 warning sign in our investment analysis , you should know about...

Currency Exchange International is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.