FineMat Applied Materials (TWSE:6698 investor five-year losses grow to 60% as the stock sheds NT$391m this past week

Generally speaking long term investing is the way to go. But along the way some stocks are going to perform badly. For example the FineMat Applied Materials Co., Ltd. (TWSE:6698) share price dropped 61% over five years. That is extremely sub-optimal, to say the least. More recently, the share price has dropped a further 30% in a month.

With the stock having lost 14% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

Check out our latest analysis for FineMat Applied Materials

Given that FineMat Applied Materials 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last half decade, FineMat Applied Materials saw its revenue increase by 12% per year. That's a pretty good rate for a long time period. The share price, meanwhile, has fallen 10% compounded, over five years. That suggests the market is disappointed with the current growth rate. A pessimistic market can create opportunities.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on FineMat Applied Materials' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

FineMat Applied Materials shareholders are up 3.2% for the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 10% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand FineMat Applied Materials better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with FineMat Applied Materials (including 2 which are concerning) .

Of course FineMat Applied Materials may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.