Investors in accesso Technology Group (LON: ACSO) are sitting on a 65% loss if they had invested five years ago

Statistically speaking, long-term investing is a profitable business. But that doesn’t mean long-term investors can avoid big losses. For example the accesso Technology Group plc (LON: ACSO) the stock price has fallen 65% in five years. It’s an unpleasant experience for long-term holders. Shareholders have had an even tougher race lately, with the share price falling 30% in the past 90 days.

Now let’s look at the fundamentals of the business and see if the long-term shareholder return matches the performance of the underlying business.

See our latest analysis for accesso Technology Group

Although the efficient markets hypothesis continues to be taught by some, it has been proven that markets are dynamic systems that are too reactive and that investors are not always rational. An imperfect but reasonable way to gauge changing sentiment around a company is to compare earnings per share (EPS) with the stock price.

In five years of share price growth, accesso Technology Group has gone from loss to profitability. This would generally be viewed as a positive, so we’re surprised to see the stock price down. Other metrics can better explain the stock price movement.

Arguably, the revenue decline of 7.0% per year for half a decade suggests that the company cannot grow in the long term. This probably encouraged some shareholders to sell the stock.

You can see how earnings and income have changed over time below (find out the exact values ​​by clicking on the image).

earnings-and-revenue-growth

We know that accesso Technology Group has improved its results over the past three years, but what does the future hold? Take a closer look at the financial health of accesso Technology Group with this free report on its balance sheet.

A different perspective

While it was certainly disappointing to see accesso Technology Group shares shed 2.0% throughout the year, it wasn’t nearly as bad as the market’s 7.5% loss. Of much greater concern is the 11% per year loss to shareholders over the past five years. As losses slow, we doubt many shareholders will be happy with the stock. It is always interesting to follow the evolution of the share price over the long term. But to better understand accesso Technology Group, we need to consider many other factors. Example: we have identified 2 warning signs for accesso Technology Group you need to be aware of, and 1 of them should not be ignored.

We’ll like accesso Technology Group better if we see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.

Please note that the market returns quoted in this article reflect the market-weighted average returns of the shares currently trading on UK stock exchanges.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Robert D. Coleman