Investors Who Bought Bonei Hatichon Civil Engineering & Infrastructures (TLV:BOTI) Shares Five Years Ago Are Now Up 345%

We think all investors should try to buy and hold high quality multi-year winners. While not every stock performs well, when investors win, they can win big. Don't believe it? Then look at the Bonei Hatichon Civil Engineering & Infrastructures Ltd. (TLV:BOTI) share price. It's 345% higher than it was five years ago. If that doesn't get you thinking about long term investing, we don't know what will. On top of that, the share price is up 77% in about a quarter.

Check out our latest analysis for Bonei Hatichon Civil Engineering & Infrastructures

Because Bonei Hatichon Civil Engineering & Infrastructures made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last half decade Bonei Hatichon Civil Engineering & Infrastructures' revenue has actually been trending down at about 15% per year. This is in stark contrast to the strong share price growth of 35%, compound, per year. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. I think it's fair to say there is probably a fair bit of excitement in the price.

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

If you are thinking of buying or selling Bonei Hatichon Civil Engineering & Infrastructures stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Bonei Hatichon Civil Engineering & Infrastructures shareholders have received a total shareholder return of 115% over the last year. That gain is better than the annual TSR over five years, which is 35%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Bonei Hatichon Civil Engineering & Infrastructures better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Bonei Hatichon Civil Engineering & Infrastructures (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.

But note: Bonei Hatichon Civil Engineering & Infrastructures may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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