Recent 14% pullback isn't enough to hurt long-term AwanBiru Technology Berhad (KLSE:AWANTEC) shareholders, they're still up 314% over 3 years

The AwanBiru Technology Berhad (KLSE:AWANTEC) share price has had a bad week, falling 14%. But that doesn't displace its brilliant performance over three years. Over that time, we've been excited to watch the share price climb an impressive 314%. Arguably, the recent fall is to be expected after such a strong rise. The thing to consider is whether there is still too much elation around the company's prospects.

In light of the stock dropping 14% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive three-year return.

See our latest analysis for AwanBiru Technology Berhad

AwanBiru Technology Berhad wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

AwanBiru Technology Berhad actually saw its revenue drop by 36% per year over three years. This is in stark contrast to the strong share price growth of 61%, compound, per year. This clear lack of correlation between revenue and share price is surprising to see in a money losing company. At the risk of upsetting holders, this does suggest that hope for a better future is playing a significant role in the share price action.

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

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

A Different Perspective

We regret to report that AwanBiru Technology Berhad shareholders are down 26% for the year. Unfortunately, that's worse than the broader market decline of 4.7%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand AwanBiru Technology Berhad better, we need to consider many other factors. Even so, be aware that AwanBiru Technology Berhad is showing 2 warning signs in our investment analysis , you should know about...

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian 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.