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How Much Did ServiceSource International's(NASDAQ:SREV) Shareholders Earn From Share Price Movements Over The Last Five Years?

Simply Wall St
·3 mins read

Statistically speaking, long term investing is a profitable endeavour. But along the way some stocks are going to perform badly. To wit, the ServiceSource International, Inc. (NASDAQ:SREV) share price managed to fall 68% over five long years. That is extremely sub-optimal, to say the least. Furthermore, it's down 15% in about a quarter. That's not much fun for holders.

View our latest analysis for ServiceSource International

Because ServiceSource International made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last five years ServiceSource International saw its revenue shrink by 3.9% per year. That's not what investors generally want to see. With neither profit nor revenue growth, the loss of 11% per year doesn't really surprise us. We don't think anyone is rushing to buy this stock. Not that many investors like to invest in companies that are losing money and not growing revenue.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think ServiceSource International will earn in the future (free profit forecasts).

A Different Perspective

It's nice to see that ServiceSource International shareholders have received a total shareholder return of 67% over the last year. Notably the five-year annualised TSR loss of 11% per year compares very unfavourably with the recent share price performance. 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. 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. Even so, be aware that ServiceSource International is showing 1 warning sign in our investment analysis , you should know about...

ServiceSource International is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.