Long term investing works well, but it doesn't always work for each individual stock. It hits us in the gut when we see fellow investors suffer a loss. Imagine if you held 21Vianet Group, Inc. ( NASDAQ:VNET ) for half a decade as the share price tanked 70%. Shareholders have had an even rougher run lately, with the share price down 10% in the last 90 days.
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Given that 21Vianet Group 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over five years, 21Vianet Group grew its revenue at 7.4% per year. That's a fairly respectable growth rate. So it is unexpected to see the stock down 22% per year in the last five years. The market can be a harsh master when your company is losing money and revenue growth disappoints.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
If you are thinking of buying or selling 21Vianet Group stock, you should check out this FREE detailed report on its balance sheet .
A Different Perspective
We're pleased to report that 21Vianet Group shareholders have received a total shareholder return of 14% over one year. That certainly beats the loss of about 22% per year over the last half decade. 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. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.
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 firstname.lastname@example.org . 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.