Investors in National Metal Manufacturing and Casting (TADAWUL:2220) from three years ago are still down 47%, even after 12% gain this past week

National Metal Manufacturing and Casting Co. (TADAWUL:2220) shareholders should be happy to see the share price up 16% in the last quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 59% in the last three years, falling well short of the market return.

While the last three years has been tough for National Metal Manufacturing and Casting shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

View our latest analysis for National Metal Manufacturing and Casting

National Metal Manufacturing and Casting isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years, National Metal Manufacturing and Casting saw its revenue grow by 2.4% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. It's likely this weak growth has contributed to an annualised return of 17% for the last three years. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). After all, growing a business isn't easy, and the process will not always be smooth.

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

This free interactive report on National Metal Manufacturing and Casting's balance sheet strength is a great place to start, if you want to investigate the stock further.

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between National Metal Manufacturing and Casting's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for National Metal Manufacturing and Casting shareholders, and that cash payout explains why its total shareholder loss of 47%, over the last 3 years, isn't as bad as the share price return.

A Different Perspective

It's nice to see that National Metal Manufacturing and Casting shareholders have received a total shareholder return of 0.5% over the last year. However, the TSR over five years, coming in at 6% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. You could get a better understanding of National Metal Manufacturing and Casting's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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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.