Stock Analysis

How Much Have B. Yair Building Corporation 1988 (TLV:BYAR) Shareholders Earned On Their Investment Over The Last Three Years?

TASE:TMIS
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B. Yair Building Corporation 1988 Ltd (TLV:BYAR) shareholders should be happy to see the share price up 12% in the last quarter. But that cannot eclipse the less-than-impressive returns over the last three years. In fact, the share price is down 58% in the last three years, falling well short of the market return.

Check out our latest analysis for B. Yair Building Corporation 1988

B. Yair Building Corporation 1988 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years, B. Yair Building Corporation 1988's revenue dropped 87% per year. That means its revenue trend is very weak compared to other loss making companies. With no profits and falling revenue it is no surprise that investors have been dumping the stock, pushing the price down by 17% per year over that time. Bagholders or 'baggies' are people who buy more of a stock as the price collapses. They are then left 'holding the bag' if the shares turn out to be worthless. It could be a while before the company repays long suffering shareholders with share price gains.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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TASE:BYAR Earnings and Revenue Growth January 1st 2021

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

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of B. Yair Building Corporation 1988, it has a TSR of 13% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that B. Yair Building Corporation 1988 shareholders have received a total shareholder return of 66% over one year. And that does include the dividend. That's better than the annualised return of 23% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for B. Yair Building Corporation 1988 you should be aware of, and 1 of them shouldn't be ignored.

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 IL exchanges.

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