Investors might be losing patience for Knowledge Economic City's (TADAWUL:4310) increasing losses, as stock sheds 6.7% over the past week

It might be of some concern to shareholders to see the Knowledge Economic City Company (TADAWUL:4310) share price down 19% in the last month. Looking further back, the stock has generated good profits over five years. It has returned a market beating 61% in that time.

In light of the stock dropping 6.7% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return.

View our latest analysis for Knowledge Economic City

Given that Knowledge Economic City didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

In the last 5 years Knowledge Economic City saw its revenue shrink by 21% per year. Even though revenue hasn't increased, the stock actually gained 10%, per year, during the same period. To us that suggests that there probably isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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 Knowledge Economic City stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 2.3% in the last year, Knowledge Economic City shareholders lost 4.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 10%, 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 Knowledge Economic City better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Knowledge Economic City .

But note: Knowledge Economic City may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.