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Imagine Owning AEI (SGX:AWG) And Wondering If The 39% Share Price Slide Is Justified

Simply Wall St

AEI Corporation Ltd. (SGX:AWG) shareholders should be happy to see the share price up 14% in the last month. But over the last half decade, the stock has not performed well. In fact, the share price is down 39%, which falls well short of the return you could get by buying an index fund.

View our latest analysis for AEI

Given that AEI didn't make a profit in the last twelve months, we'll 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 AEI saw its revenue shrink by 28% per year. That puts it in an unattractive cohort, to put it mildly. It seems pretty reasonable to us that the share price dipped 9.5% per year in that time. We doubt many shareholders are delighted with this share price performance. Risk averse investors probably wouldn't like this one much.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

SGX:AWG Income Statement, November 12th 2019

If you are thinking of buying or selling AEI stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

AEI provided a TSR of 1.4% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 9.5% per year, over five years. So this might be a sign the business has turned its fortunes around. If you would like to research AEI in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

Of course AEI 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.

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.