Keshun Waterproof TechnolgiesLtd (SZSE:300737 shareholders incur further losses as stock declines 7.4% this week, taking three-year losses to 66%

Keshun Waterproof Technolgies Co.,Ltd. (SZSE:300737) shareholders should be happy to see the share price up 28% in the last quarter. But over the last three years we've seen a quite serious decline. In that time, the share price dropped 67%. So it's good to see it climbing back up. After all, could be that the fall was overdone.

After losing 7.4% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Keshun Waterproof TechnolgiesLtd

Keshun Waterproof TechnolgiesLtd 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years, Keshun Waterproof TechnolgiesLtd's revenue dropped 3.0% per year. That's not what investors generally want to see. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 19% per year. Having said that, if growth is coming in the future, now may be the low ebb for the company. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.

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

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

A Different Perspective

Investors in Keshun Waterproof TechnolgiesLtd had a tough year, with a total loss of 11% (including dividends), against a market gain of about 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 2% 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 Keshun Waterproof TechnolgiesLtd better, we need to consider many other factors. For example, we've discovered 2 warning signs for Keshun Waterproof TechnolgiesLtd (1 shouldn't be ignored!) that you should be aware of before investing here.

We will like Keshun Waterproof TechnolgiesLtd better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.