How Much Did Ayalon Holdings'(TLV:AYAL) Shareholders Earn From Share Price Movements Over The Last Three Years?

Ayalon Holdings Ltd (TLV:AYAL) shareholders should be happy to see the share price up 16% in the last quarter. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 47% in the last three years, significantly under-performing the market.

Check out our latest analysis for Ayalon Holdings

Ayalon Holdings 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. 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 three years, Ayalon Holdings saw its revenue grow by 2.0% per year, compound. That's not a very high growth rate considering it doesn't make profits. Indeed, the stock dropped 14% over the last three years. If revenue growth accelerates, we might see the share price bounce. 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).

This free interactive report on Ayalon Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Ayalon Holdings shareholders have received a total shareholder return of 7.4% over one year. Notably the five-year annualised TSR loss of 7% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Ayalon Holdings better, we need to consider many other factors. For instance, we've identified 2 warning signs for Ayalon Holdings (1 makes us a bit uncomfortable) that you should be aware of.

Of course Ayalon Holdings 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 IL 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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