Rimbunan Sawit Berhad's (KLSE:RSAWIT) Shareholders Are Down 53% On Their Shares

Statistically speaking, long term investing is a profitable endeavour. But no-one is immune from buying too high. For example the Rimbunan Sawit Berhad (KLSE:RSAWIT) share price dropped 53% over five years. That's an unpleasant experience for long term holders. Furthermore, it's down 17% in about a quarter. That's not much fun for holders. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.

See our latest analysis for Rimbunan Sawit Berhad

Because Rimbunan Sawit Berhad 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. 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.

Over five years, Rimbunan Sawit Berhad grew its revenue at 9.4% per year. That's a pretty good rate for a long time period. The share price return isn't so respectable with an annual loss of 9% over the period. That suggests the market is disappointed with the current growth rate. That could lead to an opportunity if the company is going to become profitable sooner rather than later.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Rimbunan Sawit Berhad's financial health with this free report on its balance sheet.

A Different Perspective

Rimbunan Sawit Berhad shareholders are up 6.5% for the year. But that return falls short of the market. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Rimbunan Sawit Berhad is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

We will like Rimbunan Sawit Berhad better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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