Xi'an Typical IndustriesLtd (SHSE:600302 investor one-year losses grow to 16% as the stock sheds CN¥291m this past week

Xi'an Typical Industries Co.,Ltd (SHSE:600302) shareholders should be happy to see the share price up 15% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 16% in a year, falling short of the returns you could get by investing in an index fund.

If the past week is anything to go by, investor sentiment for Xi'an Typical IndustriesLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Xi'an Typical IndustriesLtd

Xi'an Typical IndustriesLtd wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In just one year Xi'an Typical IndustriesLtd saw its revenue fall by 8.7%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 16% in that time. What would you expect when revenue is falling, and it doesn't make a profit? We think most holders must believe revenue growth will improve, or else costs will decline.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Xi'an Typical IndustriesLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Investors in Xi'an Typical IndustriesLtd had a tough year, with a total loss of 16%, against a market gain of about 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 1.0% per year over five years. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Xi'an Typical IndustriesLtd you should be aware of.

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 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.