Jinzhou Yongshan Lithium (SHSE:603399 shareholders incur further losses as stock declines 12% this week, taking five-year losses to 41%

The main aim of stock picking is to find the market-beating stocks. But in any portfolio, there will be mixed results between individual stocks. At this point some shareholders may be questioning their investment in Jinzhou Yongshan Lithium Co., Ltd. (SHSE:603399), since the last five years saw the share price fall 44%. And it's not just long term holders hurting, because the stock is down 43% in the last year. On top of that, the share price is down 12% in the last week.

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

See our latest analysis for Jinzhou Yongshan Lithium

Given that Jinzhou Yongshan Lithium didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 half decade, Jinzhou Yongshan Lithium saw its revenue increase by 27% per year. That's better than most loss-making companies. The share price drop of 8% per year over five years would be considered let down. You could say that the market has been harsh, given the top line growth. So now is probably an apt time to look closer at the stock, if you think it has potential.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

This free interactive report on Jinzhou Yongshan Lithium's balance sheet strength is a great place to start, if you want to investigate the stock further.

What About The Total Shareholder Return (TSR)?

We've already covered Jinzhou Yongshan Lithium's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Jinzhou Yongshan Lithium shareholders, and that cash payout explains why its total shareholder loss of 41%, over the last 5 years, isn't as bad as the share price return.

A Different Perspective

We regret to report that Jinzhou Yongshan Lithium shareholders are down 43% for the year. Unfortunately, that's worse than the broader market decline of 9.6%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. You could get a better understanding of Jinzhou Yongshan Lithium's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Of course Jinzhou Yongshan Lithium 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.