L
ong-term investing is generally the way to go, but some stocks will inevitably underperform. A prime example is Ying Li International Real Estate Limited (SGX:5DM), whose share price has plummeted 70% over five years. The recent decline of 27% in three months suggests the market is unimpressed with its latest results.

    We'll examine whether the company's long-term performance aligns with its underlying business progress. Given that Ying Li International Real Estate didn't turn a profit in the last year, we'll focus on revenue growth. Typically, companies without profits are expected to grow revenue annually, but Ying Li International Real Estate has seen a 9.2% decline in trailing twelve-month revenue over each of the past five years.

    This poor performance is reflected in its share price, which has dropped 11% (annualized) over the same period. We generally advise against investing in companies that lose money and fail to grow revenues. Before buying, it's essential to thoroughly research this company, as it appears too risky for us.

    The graph below illustrates how earnings and revenue have changed over time. If you're considering buying or selling Ying Li International Real Estate stock, check out this FREE detailed report on its balance sheet. Despite a 50% total shareholder return over one year, the TSR loss of 11% per year over five years raises concerns. We recommend exploring other factors to understand Ying Li International Real Estate better and being aware that it shows 2 warning signs in our investment analysis.