Yoma Strategic Holdings (SGX:Z59) investors are sitting on a loss of 84% if they invested five years ago




  • In Business
  • 2022-11-03 02:54:23Z
  • By Simply Wall St.
 

We're definitely into long term investing, but some companies are simply bad investments over any time frame. It hits us in the gut when we see fellow investors suffer a loss. Anyone who held Yoma Strategic Holdings Ltd. (SGX:Z59) for five years would be nursing their metaphorical wounds since the share price dropped 84% in that time. And some of the more recent buyers are probably worried, too, with the stock falling 34% in the last year. Furthermore, it's down 35% in about a quarter. That's not much fun for holders. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

See our latest analysis for Yoma Strategic Holdings

Because Yoma Strategic Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last five years Yoma Strategic Holdings saw its revenue shrink by 0.3% per year. That's not what investors generally want to see. If a business loses money, you want it to grow, so no surprises that the share price has dropped 13% each year in that time. We're generally averse to companies with declining revenues, but we're not alone in that. Fear of becoming a 'bagholder' may be keeping people away from this stock.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Yoma Strategic Holdings' earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 3.2% in the twelve months, Yoma Strategic Holdings shareholders did even worse, losing 34%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 13% 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. It's always interesting to track share price performance over the longer term. But to understand Yoma Strategic Holdings better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Yoma Strategic Holdings you should be aware of.

Of course Yoma Strategic Holdings 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 SG exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Investors in Scott Technology (NZSE:SCT) have unfortunately lost 22% over the last year
Investors in Scott Technology (NZSE:SCT) have unfortunately lost 22% over the last year

Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. Active...

Kiwi Property Group First Half 2023 Earnings: FFO per share: NZ$0.04 (vs NZ$0.037 in 1H 2022)
Kiwi Property Group First Half 2023 Earnings: FFO per share: NZ$0.04 (vs NZ$0.037 in 1H 2022)

Kiwi Property Group ( NZSE:KPG ) First Half 2023 Results Key Financial Results Revenue: NZ$130.2m (up 6.5% from 1H...

It
It's Down 50% But Promisia Healthcare Limited (NZSE:PHL) Could Be Riskier Than It Looks

Promisia Healthcare Limited ( NZSE:PHL ) shareholders that were waiting for something to happen have been dealt a blow...

Cracker Barrel Old Country Store First Quarter 2023 Earnings: EPS Misses Expectations
Cracker Barrel Old Country Store First Quarter 2023 Earnings: EPS Misses Expectations

Cracker Barrel Old Country Store ( NASDAQ:CBRL ) First Quarter 2023 Results Key Financial Results Revenue: US$839.5m...

Lands
Lands' End Third Quarter 2023 Earnings: Misses Expectations

Lands' End ( NASDAQ:LE ) Third Quarter 2023 Results Key Financial Results Revenue: US$371.0m (down 1.3% from 3Q 2022...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business