Saudi Pharmaceutical Industries and Medical Appliances (TADAWUL:2070 investor three-year losses grow to 51% as the stock sheds ر.س246m this past week

The truth is that if you invest for long enough, you're going to end up with some losing stocks. But the last three years have been particularly tough on longer term Saudi Pharmaceutical Industries and Medical Appliances Corporation (TADAWUL:2070) shareholders. So they might be feeling emotional about the 52% share price collapse, in that time. And over the last year the share price fell 30%, so we doubt many shareholders are delighted. Furthermore, it's down 30% in about a quarter. That's not much fun for holders.

If the past week is anything to go by, investor sentiment for Saudi Pharmaceutical Industries and Medical Appliances isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Saudi Pharmaceutical Industries and Medical Appliances

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

We know that Saudi Pharmaceutical Industries and Medical Appliances has been profitable in the past. On the other hand, it reported a trailing twelve months loss, suggesting it isn't reliably profitable. Other metrics might give us a better handle on how its value is changing over time.

Revenue is actually up 4.1% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating Saudi Pharmaceutical Industries and Medical Appliances further; while we may be missing something on this analysis, there might also be an opportunity.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We regret to report that Saudi Pharmaceutical Industries and Medical Appliances shareholders are down 30% for the year. Unfortunately, that's worse than the broader market decline of 5.4%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 2%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Saudi Pharmaceutical Industries and Medical Appliances better, we need to consider many other factors. Take risks, for example - Saudi Pharmaceutical Industries and Medical Appliances has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com