Tianjin Jiuri New Materials (SHSE:688199 investor five-year losses grow to 66% as the stock sheds CN¥261m this past week

We think intelligent long term investing is the way to go. But no-one is immune from buying too high. For example, after five long years the Tianjin Jiuri New Materials Co., Ltd. (SHSE:688199) share price is a whole 68% lower. We certainly feel for shareholders who bought near the top. And it's not just long term holders hurting, because the stock is down 21% in the last year. Even worse, it's down 19% in about a month, which isn't fun at all.

Since Tianjin Jiuri New Materials has shed CN¥261m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for Tianjin Jiuri New Materials

Because Tianjin Jiuri New Materials 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.

In the last half decade, Tianjin Jiuri New Materials saw its revenue increase by 4.0% per year. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 11% for the last five years. We'd want to see proof that future revenue growth is likely to be significantly stronger before getting too interested in Tianjin Jiuri New Materials. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term).

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

If you are thinking of buying or selling Tianjin Jiuri New Materials stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 7.2% in the last year, Tianjin Jiuri New Materials shareholders lost 21%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 11% 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 might want to assess this data-rich visualization of its earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.