Shareholders in Zhejiang Bangjie Holding GroupLtd (SZSE:002634) have lost 60%, as stock drops 11% this past week

Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held Zhejiang Bangjie Holding Group Co.,Ltd (SZSE:002634) over the last year knows what a loser feels like. The share price is down a hefty 60% in that time. To make matters worse, the returns over three years have also been really disappointing (the share price is 43% lower than three years ago). The falls have accelerated recently, with the share price down 33% in the last three months.

If the past week is anything to go by, investor sentiment for Zhejiang Bangjie Holding GroupLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

See our latest analysis for Zhejiang Bangjie Holding GroupLtd

Zhejiang Bangjie Holding GroupLtd 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.

Zhejiang Bangjie Holding GroupLtd grew its revenue by 90% over the last year. That's a strong result which is better than most other loss making companies. In contrast the share price is down 60% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

While the broader market lost about 18% in the twelve months, Zhejiang Bangjie Holding GroupLtd shareholders did even worse, losing 60%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 9% 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. You could get a better understanding of Zhejiang Bangjie Holding GroupLtd's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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.