Would Shareholders Who Purchased HIAG Immobilien Holding's (VTX:HIAG) Stock Three Years Be Happy With The Share price Today?

For many investors, the main point of stock picking is to generate higher returns than the overall market. But the risk of stock picking is that you will likely buy under-performing companies. We regret to report that long term HIAG Immobilien Holding AG (VTX:HIAG) shareholders have had that experience, with the share price dropping 17% in three years, versus a market return of about 23%.

See our latest analysis for HIAG Immobilien Holding

HIAG Immobilien Holding 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years, HIAG Immobilien Holding saw its revenue grow by 5.0% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. The stock dropped 5% during that time. If revenue growth accelerates, we might see the share price bounce. But ultimately the key will be whether the company can become profitability.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at HIAG Immobilien Holding's financial health with this free report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We've already covered HIAG Immobilien Holding's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that HIAG Immobilien Holding's TSR, which was a 11% drop over the last 3 years, was not as bad as the share price return.

A Different Perspective

Investors in HIAG Immobilien Holding had a tough year, with a total loss of 4.6%, against a market gain of about 2.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 5% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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 instance, we've identified 2 warning signs for HIAG Immobilien Holding (1 shouldn't be ignored) that you should be aware of.

Of course HIAG Immobilien Holding may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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