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Statistically speaking, long term investing is a
profitable endeavour. But that doesn't mean long term investors can
avoid big losses. For example, after five long years the
EMC Instytut Medyczny SA (WSE:EMC) share price is
a whole 65% lower. That's an unpleasant experience for long term
holders. We also note that the stock has performed poorly over the
last year, with the share price down 33%. There was little comfort
for shareholders in the last week as the price declined a further
Check out our latest
analysis for EMC Instytut Medyczny
Because EMC Instytut Medyczny is loss-making, we
think the market is probably more focussed on revenue and revenue
growth, at least for now. When a company doesn't make profits, we'd
generally expect to see good revenue growth. Some companies are
willing to postpone profitability to grow revenue faster, but in
that case one does expect good top-line growth.
In the last half decade, EMC Instytut Medyczny
saw its revenue increase by 9.6% per year. That's a pretty good
rate for a long time period. The share price, meanwhile, has fallen
19% compounded, over five years. That suggests the market is
disappointed with the current growth rate. That could lead to an
opportunity if the company is going to become profitable sooner
rather than later.
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.
Take a more thorough look at EMC Instytut
Medyczny's financial health with this free
report on its balance
We regret to report that EMC Instytut Medyczny
shareholders are down 33% for the year. Unfortunately, that's worse
than the broader market decline of 1.1%. 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.
Unfortunately, last year's performance may indicate unresolved
challenges, given that it was worse than the annualised loss of 19%
over the last half decade. We realise that Buffett has said
investors should 'buy when there is blood on the streets', but we
caution that investors should first be sure they are buying a high
quality businesses. You might want to assess this data-rich
visualization of its earnings, revenue and cash flow.
If you like to buy stocks alongside management,
then you might just love this free list of companies. (Hint:
insiders have been buying them).
Please note, the market returns quoted in
this article reflect the market weighted average returns of stocks
that currently trade on PL 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
If you spot an error that warrants correction, please contact
the editor at
[email protected]. 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.