Investors in Abdulmohsen Al-Hokair Group for Tourism and Development (TADAWUL:1820) have unfortunately lost 54% over the last three years

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term Abdulmohsen Al-Hokair Group for Tourism and Development Company (TADAWUL:1820) shareholders have had a particularly rough ride in the last three year. Unfortunately, they have held through a 67% decline in the share price in that time. Even worse, it's down 22% in about a month, which isn't fun at all.

Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.

View our latest analysis for Abdulmohsen Al-Hokair Group for Tourism and Development

Because Abdulmohsen Al-Hokair Group for Tourism and Development 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 desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years, Abdulmohsen Al-Hokair Group for Tourism and Development saw its revenue grow by 7.4% per year, compound. That's not a very high growth rate considering it doesn't make profits. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 19% during the period. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.

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

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What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Abdulmohsen Al-Hokair Group for Tourism and Development's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Abdulmohsen Al-Hokair Group for Tourism and Development's TSR of was a loss of 54% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Abdulmohsen Al-Hokair Group for Tourism and Development shareholders gained a total return of 5.7% during the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 7% endured over half a decade. So this might be a sign the business has turned its fortunes around. 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. For instance, we've identified 2 warning signs for Abdulmohsen Al-Hokair Group for Tourism and Development (1 shouldn't be ignored) that you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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