OCI N.V. (AMS:OCI) shareholders should be happy to see the share price up 16% in the last week. But that is little comfort to those holding over the last half decade, sitting on a big loss. Indeed, the share price is down 64% in the period. So were hesitant to put much weight behind the short term increase. Wed err towards caution given the long term under-performance.
See our latest analysis for OCI
Given that OCI didnt make a profit in the last twelve months, well focus on revenue growth to form a quick view of its business development. When a company doesnt make profits, wed generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over five years, OCI grew its revenue at 7.3% per year. Thats 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.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Its good to see that there was some significant insider buying in the last three months. Thats a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling OCI stock, you should check out this free report showing analyst profit forecasts.
While the broader market lost about 24% in the twelve months, OCI shareholders did even worse, losing 57%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case theres a good opportunity. Unfortunately, last years performance may indicate unresolved challenges, given that it was worse than the annualised loss of 19% over the last half decade. We realise that Baron Rothschild 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 business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. Weve identified 1 warning sign with OCI , and understanding them should be part of your investment process.
OCI is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NL exchanges.
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.
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. Thank you for reading.
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If You Had Bought OCI (AMS:OCI) Stock Five Years Ago, Youd Be Sitting On A 64% Loss, Today - Simply Wall St
