- Saudi Arabia
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- SASE:4250
Even after rising 4.3% this past week, Jabal Omar Development (TADAWUL:4250) shareholders are still down 17% over the past five years
The main aim of stock picking is to find the market-beating stocks. But every investor is virtually certain to have both over-performing and under-performing stocks. So we wouldn't blame long term Jabal Omar Development Company (TADAWUL:4250) shareholders for doubting their decision to hold, with the stock down 17% over a half decade. In contrast, the stock price has popped 8.9% in the last thirty days.
While the stock has risen 4.3% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
View our latest analysis for Jabal Omar Development
Jabal Omar Development 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.
Over five years, Jabal Omar Development grew its revenue at 30% per year. That's better than most loss-making companies. Shareholders are no doubt disappointed with the loss of 3%, each year, in that time. So you might argue the Jabal Omar Development should get more credit for its rather impressive revenue growth over the period. If that's the case, now might be the smart time to take a close look at it.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling Jabal Omar Development stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We regret to report that Jabal Omar Development shareholders are down 4.6% for the year. Unfortunately, that's worse than the broader market decline of 1.4%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About SASE:4250
Jabal Omar Development
Operates as a real estate development company in the Kingdom of Saudi Arabia.
Worrying balance sheet with weak fundamentals.