Delixi New Energy Technology (SHSE:603032 shareholders incur further losses as stock declines 15% this week, taking one-year losses to 63%

Taking the occasional loss comes part and parcel with investing on the stock market. And unfortunately for Delixi New Energy Technology Co., Ltd. (SHSE:603032) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 63% in that time. On the bright side, the stock is actually up 25% in the last three years. Shareholders have had an even rougher run lately, with the share price down 35% in the last 90 days.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

See our latest analysis for Delixi New Energy Technology

Delixi New Energy Technology isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. 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 Delixi New Energy Technology saw its revenue fall by 46%. That's not what investors generally want to see. In the absence of profits, it's not unreasonable that the share price fell 63%. Having said that, if growth is coming in the future, the stock may have better days ahead. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Delixi New Energy Technology's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 10% in the twelve months, Delixi New Energy Technology shareholders did even worse, losing 63%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 6% 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. 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. Even so, be aware that Delixi New Energy Technology is showing 1 warning sign in our investment analysis , you should know about...

But note: Delixi New Energy Technology may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.