Zhejiang Huatong Meat Products (SZSE:002840) shareholders are up 11% this past week, but still in the red over the last year

While not a mind-blowing move, it is good to see that the Zhejiang Huatong Meat Products Co., Ltd. (SZSE:002840) share price has gained 15% in the last three months. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 29% in the last year, well below the market return.

The recent uptick of 11% could be a positive sign of things to come, so let's take a look at historical fundamentals.

See our latest analysis for Zhejiang Huatong Meat Products

Because Zhejiang Huatong Meat Products made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good 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.

Zhejiang Huatong Meat Products' revenue didn't grow at all in the last year. In fact, it fell 3.2%. That's not what investors generally want to see. Shareholders have seen the share price drop 29% in that time. 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.

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

Take a more thorough look at Zhejiang Huatong Meat Products' financial health with this free report on its balance sheet.

A Different Perspective

Zhejiang Huatong Meat Products shareholders are down 29% for the year, but the market itself is up 4.2%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 5%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

Of course Zhejiang Huatong Meat Products may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.