The Al Hassan Ghazi Ibrahim Shaker (TADAWUL:1214) Share Price Is Up 63% And Shareholders Are Holding On

By buying an index fund, investors can approximate the average market return. But if you choose individual stocks with prowess, you can make superior returns. For example, the Al Hassan Ghazi Ibrahim Shaker Company (TADAWUL:1214) share price is up 63% in the last three years, clearly besting the market return of around 22% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 35%.

See our latest analysis for Al Hassan Ghazi Ibrahim Shaker

We don't think that Al Hassan Ghazi Ibrahim Shaker's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

Al Hassan Ghazi Ibrahim Shaker actually saw its revenue drop by 4.8% per year over three years. The revenue growth might be lacking but the share price has gained 18% each year in that time. Unless the company is going to make profits soon, we would be pretty cautious about it.

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

It is of course excellent to see how Al Hassan Ghazi Ibrahim Shaker has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Al Hassan Ghazi Ibrahim Shaker's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Al Hassan Ghazi Ibrahim Shaker has rewarded shareholders with a total shareholder return of 35% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 5% per year over five years. 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 Al Hassan Ghazi Ibrahim Shaker better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Al Hassan Ghazi Ibrahim Shaker (of which 1 is significant!) you should know about.

Of course Al Hassan Ghazi Ibrahim Shaker 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 SA 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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