Compagnie Industrielle et Financière d'Entreprises (EPA:INFE) Share Prices Have Dropped 29% In The Last Three Years

Many investors define successful investing as beating the market average over the long term. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Compagnie Industrielle et Financière d'Entreprises SA (EPA:INFE) shareholders, since the share price is down 29% in the last three years, falling well short of the market return of around 14%.

See our latest analysis for Compagnie Industrielle et Financière d'Entreprises

While Compagnie Industrielle et Financière d'Entreprises made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over three years, Compagnie Industrielle et Financière d'Entreprises grew revenue at 3.2% per year. That's not a very high growth rate considering it doesn't make profits. The stock dropped 9% during that time. Shareholders will probably be hoping growth picks up soon. But ultimately the key will be whether the company can become profitability.

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

Take a more thorough look at Compagnie Industrielle et Financière d'Entreprises' financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Compagnie Industrielle et Financière d'Entreprises shareholders have received a total shareholder return of 5.3% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 1.6%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Case in point: We've spotted 4 warning signs for Compagnie Industrielle et Financière d'Entreprises you should be aware of, and 2 of them are concerning.

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 FR 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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