What Type Of Returns Would AmTRAN TechnologyLtd's(TPE:2489) Shareholders Have Earned If They Purchased Their SharesThree Years Ago?

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But if you try your hand at stock picking, your risk returning less than the market. We regret to report that long term AmTRAN Technology Co.,Ltd (TPE:2489) shareholders have had that experience, with the share price dropping 34% in three years, versus a market return of about 68%.

Check out our latest analysis for AmTRAN TechnologyLtd

AmTRAN TechnologyLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years AmTRAN TechnologyLtd saw its revenue shrink by 4.9% per year. That's not what investors generally want to see. The annual decline of 10% per year in that period has clearly disappointed holders. That makes sense given the lack of either profits or revenue growth. However, in this kind of situation you can sometimes find opportunity, where sentiment is negative but the company is actually making good progress.

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

AmTRAN TechnologyLtd shareholders are up 12% for the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 3% endured over half a decade. It could well be that the business is stabilizing. You could get a better understanding of AmTRAN TechnologyLtd's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

We will like AmTRAN TechnologyLtd better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on TW exchanges.

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This article by Simply Wall St is general in nature. 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.
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