It is doubtless a positive to see that the Apex International Financial Engineering Res. & Tech. Co., Ltd (GTSM:5210) share price has gained some 40% in the last three months. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 13% in that half decade.
Because Apex International Financial Engineering Res. & Tech 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over half a decade Apex International Financial Engineering Res. & Tech reduced its trailing twelve month revenue by 2.6% for each year. While far from catastrophic that is not good. The stock hasn't done well for shareholders in the last five years, falling 2.7%, annualized. But it doesn't surprise given the falling revenue. Without profits, its hard to see how shareholders win if the revenue keeps falling.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
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.
What about the Total Shareholder Return (TSR)?
Investors should note that there's a difference between Apex International Financial Engineering Res. & Tech's total shareholder return (TSR) and its share price change, which we've covered above. 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 Apex International Financial Engineering Res. & Tech's TSR, which was a 8.1% drop over the last 5 years, was not as bad as the share price return.
A Different Perspective
While the broader market gained around 13% in the last year, Apex International Financial Engineering Res. & Tech shareholders lost 2.6%. 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 1.7% over the last half decade. 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. It's always interesting to track share price performance over the longer term. But to understand Apex International Financial Engineering Res. & Tech better, we need to consider many other factors. For example, we've discovered 3 warning signs for Apex International Financial Engineering Res. & Tech (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
If you are like me, then you will not want to miss this free list of growing companies that insiders are 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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