Telecom Italia (BIT:TIT investor five-year losses grow to 54% as the stock sheds €206m this past week

Generally speaking long term investing is the way to go. But along the way some stocks are going to perform badly. For example, after five long years the Telecom Italia S.p.A. (BIT:TIT) share price is a whole 56% lower. We certainly feel for shareholders who bought near the top.

After losing 3.7% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Telecom Italia

Because Telecom Italia 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over half a decade Telecom Italia reduced its trailing twelve month revenue by 4.4% for each year. While far from catastrophic that is not good. The share price decline of 9% compound, over five years, is understandable given the company is losing money, and revenue is moving in the wrong direction. The chance of imminent investor enthusiasm for this stock seems slimmer than Louise Brooks. Ultimately, it may be worth watching - should revenue pick up, the share price might follow.

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

Telecom Italia is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Telecom Italia stock, you should check out this free report showing analyst consensus estimates for future profits.

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Telecom Italia's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Telecom Italia's TSR of was a loss of 54% for the 5 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Telecom Italia shareholders gained a total return of 14% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 9% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Telecom Italia better, we need to consider many other factors. Take risks, for example - Telecom Italia has 1 warning sign we think you should be aware of.

But note: Telecom Italia 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 Italian exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.