Guangdong Dcenti Auto-Parts Stock Limited (SHSE:603335) one-year losses have grown faster than shareholder returns have fallen, but the stock surges 11% this past week

This week we saw the Guangdong Dcenti Auto-Parts Stock Limited Company (SHSE:603335) share price climb by 11%. But in truth the last year hasn't been good for the share price. In fact the stock is down 34% in the last year, well below the market return.

Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.

View our latest analysis for Guangdong Dcenti Auto-Parts Stock Limited

Guangdong Dcenti Auto-Parts Stock Limited isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In just one year Guangdong Dcenti Auto-Parts Stock Limited saw its revenue fall by 17%. That looks pretty grim, at a glance. The stock price has languished lately, falling 34% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

This free interactive report on Guangdong Dcenti Auto-Parts Stock Limited's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We regret to report that Guangdong Dcenti Auto-Parts Stock Limited shareholders are down 34% for the year. Unfortunately, that's worse than the broader market decline of 20%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 4% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Guangdong Dcenti Auto-Parts Stock Limited has 2 warning signs we think you should be aware of.

We will like Guangdong Dcenti Auto-Parts Stock Limited better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com