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Investors in Tainergy Tech (TWSE:4934) have unfortunately lost 62% over the last three years
The truth is that if you invest for long enough, you're going to end up with some losing stocks. Long term Tainergy Tech Co., Ltd. (TWSE:4934) shareholders know that all too well, since the share price is down considerably over three years. Unfortunately, they have held through a 62% decline in the share price in that time. And over the last year the share price fell 48%, so we doubt many shareholders are delighted. The falls have accelerated recently, with the share price down 27% in the last three months.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
See our latest analysis for Tainergy Tech
Tainergy Tech isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over three years, Tainergy Tech grew revenue at 2.1% per year. Given it's losing money in pursuit of growth, we are not really impressed with that. It's likely this weak growth has contributed to an annualised return of 17% for the last three years. It can be well worth keeping an eye on growth stocks that disappoint the market, because sometimes they re-accelerate. Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on Tainergy Tech's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Tainergy Tech shareholders are down 48% for the year, but the market itself is up 35%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 8% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Tainergy Tech better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Tainergy Tech you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Taiwanese exchanges.
Valuation is complex, but we're here to simplify it.
Discover if Tainergy Tech might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About TWSE:4934
Tainergy Tech
Designs, develops, manufactures, and markets solar cells, modules, and related systems in Taiwan.
Flawless balance sheet and good value.