Takween Advanced Industries (TADAWUL:1201) pulls back 13% this week, but still delivers shareholders favorable 16% CAGR over 3 years

Takween Advanced Industries (TADAWUL:1201) shareholders might be concerned after seeing the share price drop 22% in the last quarter. But over three years, the returns would have left most investors smiling After all, the share price is up a market-beating 56% in that time.

While the stock has fallen 13% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

Check out our latest analysis for Takween Advanced Industries

Because Takween Advanced Industries 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Takween Advanced Industries actually saw its revenue drop by 18% per year over three years. The revenue growth might be lacking but the share price has gained 16% each year in that time. Unless the company is going to make profits soon, we would be pretty cautious about it.

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

If you are thinking of buying or selling Takween Advanced Industries stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 21% in the last year, Takween Advanced Industries shareholders lost 43%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 2% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Takween Advanced Industries better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Takween Advanced Industries you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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. 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.