While it may not be enough for some shareholders, we think it is good to see the CSC Holdings Limited (SGX:C06) share price up 20% in a single quarter. But that cant change the reality that over the longer term (five years), the returns have been really quite dismal. In that time the share price has delivered a rude shock to holders, who find themselves down 59% after a long stretch. So were hesitant to put much weight behind the short term increase. However, in the best case scenario (far from fait accompli), this improved performance might be sustained.
View our latest analysis for CSC Holdings
Given that CSC Holdings didnt make a profit in the last twelve months, well focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last five years CSC Holdings saw its revenue shrink by 7.5% per year. While far from catastrophic that is not good. The share price decline of 16% compound, over five years, is understandable given the company is losing money, and revenue is moving in the wrong direction. The chance of imminent investor enthusiasm for this stock seems slimmer than Louise Brooks. Not that many investors like to invest in companies that are losing money and not growing revenue.
The image below shows how revenue has tracked over time.
If you are thinking of buying or selling CSC Holdings stock, you should check out this FREE detailed report on its balance sheet.
Weve already covered CSC Holdingss share price action, but we should also mention its total shareholder return (TSR). 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. Dividends have been really beneficial for CSC Holdings shareholders, and that cash payout explains why its total shareholder loss of 56%, over the last 5 years, isnt as bad as the share price return.
Its good to see that CSC Holdings has rewarded shareholders with a total shareholder return of 14% in the last twelve months. Theres no doubt those recent returns are much better than the TSR loss of 15% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. If you would like to research CSC Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
But note: CSC 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 SG 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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Investors Who Bought CSC Holdings (SGX:C06) Shares Five Years Ago Are Now Down 59% - Simply Wall St
