Tianyang New Materials (Shanghai) Technology (SHSE:603330 shareholders incur further losses as stock declines 12% this week, taking three-year losses to 65%

The truth is that if you invest for long enough, you're going to end up with some losing stocks. But long term Tianyang New Materials (Shanghai) Technology Co., Ltd. (SHSE:603330) shareholders have had a particularly rough ride in the last three year. So they might be feeling emotional about the 66% share price collapse, in that time. The more recent news is of little comfort, with the share price down 52% in a year. More recently, the share price has dropped a further 16% in a month.

With the stock having lost 12% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

See our latest analysis for Tianyang New Materials (Shanghai) Technology

Tianyang New Materials (Shanghai) 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 the last three years, Tianyang New Materials (Shanghai) Technology saw its revenue grow by 15% per year, compound. That's a pretty good rate of top-line growth. So some shareholders would be frustrated with the compound loss of 18% per year. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While the broader market lost about 10% in the twelve months, Tianyang New Materials (Shanghai) Technology shareholders did even worse, losing 52% (even including dividends). 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 1.8% 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. It's always interesting to track share price performance over the longer term. But to understand Tianyang New Materials (Shanghai) Technology better, we need to consider many other factors. Even so, be aware that Tianyang New Materials (Shanghai) Technology is showing 2 warning signs in our investment analysis , and 1 of those is significant...

But note: Tianyang New Materials (Shanghai) 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.