Stock Analysis

Batic Investment and Logistics (TADAWUL:4110) adds ر.س156m to market cap in the past 7 days, though investors from five years ago are still down 19%

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SASE:4110
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Batic Investment and Logistics Company (TADAWUL:4110) shareholders should be happy to see the share price up 12% in the last week. But if you look at the last five years the returns have not been good. After all, the share price is down 49% in that time, significantly under-performing the market.

While the stock has risen 12% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

Check out our latest analysis for Batic Investment and Logistics

Batic Investment and Logistics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last five years Batic Investment and Logistics saw its revenue shrink by 0.9% per year. While far from catastrophic that is not good. The stock hasn't done well for shareholders in the last five years, falling 8%, annualized. Unfortunately, though, it makes sense given the lack of either profits or revenue growth. Without profits, its hard to see how shareholders win if the revenue keeps falling.

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

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SASE:4110 Earnings and Revenue Growth March 31st 2023

Take a more thorough look at Batic Investment and Logistics' financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered Batic Investment and Logistics' share price action, but we should also mention its total shareholder return (TSR). 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. Its history of dividend payouts mean that Batic Investment and Logistics' TSR, which was a 19% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

It's good to see that Batic Investment and Logistics has rewarded shareholders with a total shareholder return of 4.0% in the last twelve months. That certainly beats the loss of about 4% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Batic Investment and Logistics you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

Valuation is complex, but we're helping make it simple.

Find out whether Batic Investment and Logistics is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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