What Type Of Returns Would IT Tech Packaging's(NYSEMKT:ITP) Shareholders Have Earned If They Purchased Their SharesThree Years Ago?
IT Tech Packaging, Inc. (NYSEMKT:ITP) shareholders are doubtless heartened to see the share price bounce 66% in just one week. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 34% in the last three years, significantly under-performing the market.
View our latest analysis for IT Tech Packaging
Because IT Tech Packaging 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years IT Tech Packaging saw its revenue shrink by 0.008% per year. That is not a good result. The annual decline of 10% per year in that period has clearly disappointed holders. And with no profits, and weak revenue, are you surprised? However, in this kind of situation you can sometimes find opportunity, where sentiment is negative but the company is actually making good progress.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on IT Tech Packaging's earnings, revenue and cash flow.
A Different Perspective
IT Tech Packaging shareholders gained a total return of 9.2% during the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 5% per year, over five years. It could well be that the business is stabilizing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for IT Tech Packaging (of which 2 can't be ignored!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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.
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