Hotel Royal (SGX:H12) Investors Face 38% Loss in Three Years
Hotel Royal (SGX:H12) investors have faced a 38% loss over the past three years, with a 42% decline in share price over five years. Despite moving from loss to profitability, revenue has dropped 13% annually, raising concerns. EPS fell 63.6% in Q4 2024, indicating financial struggles. Total shareholder return was -38%, but dividends provided some relief. The stock remains a watchlist candidate due to modest CEO remuneration and ongoing dividend payouts, but revenue and EPS declines are significant red flags. Investors are advised to conduct thorough research before making decisions.
Ladies and gentlemen, buckle up! We're diving into the rollercoaster ride that is Hotel Royal (SGX:H12). If you invested in this stock three years ago, you're sitting on a loss of 38%. That's right, folks, a whopping 38%! Let's break down what's been happening and why you need to pay attention.
First things first, the share price of Hotel Royal has been on a downward spiral. Over the past five years, it's plummeted by 42%. That's a massive drop, and it's got investors scratching their heads. You might be thinking, "But they moved from a loss to profitability!" And you're right, they did. But here's the kicker: the market doesn't always reward profitability. It's all about growth, growth, growth!
Let's talk numbers. Revenue has been dropping like a stone, 13% per year for half a decade. That's a red flag, folks. It means the company is struggling to grow, and that's a big problem. The market hates uncertainty, and this kind of revenue drop is a clear sign that something's not right.
Now, let's talk earnings per share (EPS). In the fourth quarter of 2024, EPS was $0.32, down from $0.88 the year before. That's a 63.6% drop! Ouch! That's a massive hit to the company's financial performance and a clear indicator that investors should be cautious.
But here's where it gets interesting. The total shareholder return (TSR) for the last five years was -38%, which is actually better than the share price return. Why? Because of dividends. The company has been paying out dividends, and if you reinvested them, you might have fared better. But let's be real, folks, a 38% loss is still a loss.
So, what's the verdict? Is Hotel Royal a buy, a sell, or a hold? Well, it's not a no-brainer, but it's definitely a stock to watch. The company's CEO is remunerated more modestly than most, which is a good sign. And the dividends have been a lifeline for shareholders. But the revenue drop and the EPS decline are major red flags.
You need to do your own research, folks. Look at the earnings, the revenue, and the cash flow. And remember, the market is a voting machine in the short term, but a weighing machine in the long term. So, stay tuned, stay informed, and stay ahead of the game. Because in the world of investing, knowledge is power, and power is money. BOO-YAH!
