Yahoo Finance Those Who Purchased Chant West Holdings (ASX:CWL) Shares Three Years Ago Have A 81% Loss To Show For It
It’s not possible to invest over long periods without making some bad investments. But you have a problem if you face massive losses more than once in a while. So spare a thought for the long term shareholders of Chant West Holdings Limited (ASX:CWL); the share price is down a whopping 81% in the last three years. That would be a disturbing experience.
While a drop like that is definitely a body blow, money isn’t as important as health and happiness.
Check out our latest analysis for Chant West Holdings
Because Chant West Holdings is loss-making, 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over three years, Chant West Holdings grew revenue at 18% per year. That’s a pretty good rate of top-line growth. So it’s hard to believe the share price decline of 42% per year is due to the revenue. More likely, the market was spooked by the cost of that revenue. This is exactly why investors need to diversify – even when a loss making company grows revenue, it can fail to deliver for shareholders.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
We’re pleased to report that Chant West Holdings rewarded shareholders with a total shareholder return of 14% over the last year. This recent result is much better than the 42% drop suffered by shareholders each year (on average) over the last three. We’re generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
But note: Chant West Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
