Grand Ocean Retail Group (TWSE:5907 shareholders incur further losses as stock declines 11% this week, taking five-year losses to 67%

Statistically speaking, long term investing is a profitable endeavour. But along the way some stocks are going to perform badly. For example the Grand Ocean Retail Group Ltd. (TWSE:5907) share price dropped 73% over five years. 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 40%. The falls have accelerated recently, with the share price down 23% in the last three months.

After losing 11% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

Check out our latest analysis for Grand Ocean Retail Group

Because Grand Ocean Retail Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last five years Grand Ocean Retail Group saw its revenue shrink by 11% per year. That's definitely a weaker result than most pre-profit companies report. So it's not altogether surprising to see the share price down 12% per year in the same time period. We don't think this is a particularly promising picture. Ironically, that behavior could create an opportunity for the contrarian investor - but only if there are good reasons to predict a brighter future.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Grand Ocean Retail Group's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered Grand Ocean Retail Group's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Grand Ocean Retail Group's TSR, which was a 67% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

Investors in Grand Ocean Retail Group had a tough year, with a total loss of 40%, against a market gain of about 34%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 11% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Grand Ocean Retail Group (at least 2 which can't be ignored) , and understanding them should be part of your investment process.

For those who like to find winning investments this free list of growing 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.