International CSRC Investment Holdings (TWSE:2104 shareholders incur further losses as stock declines 12% this week, taking five-year losses to 56%

We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. Zooming in on an example, the International CSRC Investment Holdings Co., Ltd. (TWSE:2104) share price dropped 57% in the last half decade. That's not a lot of fun for true believers. We also note that the stock has performed poorly over the last year, with the share price down 31%. Shareholders have had an even rougher run lately, with the share price down 14% in the last 90 days.

Since International CSRC Investment Holdings has shed NT$1.8b from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

Check out our latest analysis for International CSRC Investment Holdings

International CSRC Investment Holdings 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 desire strong revenue growth. 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.

In the last five years International CSRC Investment Holdings saw its revenue shrink by 1.2% per year. That's not what investors generally want to see. The share price decline of 9% compound, over five years, is understandable given the company is losing money, and revenue is moving in the wrong direction. The chance of imminent investor enthusiasm for this stock seems slimmer than Louise Brooks. Not that many investors like to invest in companies that are losing money and not growing revenue.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at International CSRC Investment Holdings' financial health with this free report on its balance sheet.

A Different Perspective

While the broader market gained around 31% in the last year, International CSRC Investment Holdings shareholders lost 31%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for International CSRC Investment Holdings you should be aware of.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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