Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd (SHSE:600831 shareholders incur further losses as stock declines 10% this week, taking five-year losses to 72%

While it may not be enough for some shareholders, we think it is good to see the Shaanxi Broadcast & TV Network Intermediary(Group)Co.,Ltd. (SHSE:600831) share price up 14% in a single quarter. But will that heal all the wounds inflicted over 5 years of declines? Unlikely. Indeed, the share price is down a whopping 72% in that time. It's true that the recent bounce could signal the company is turning over a new leaf, but we are not so sure. The real question is whether the business can leave its past behind and improve itself over the years ahead.

With the stock having lost 10% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

Check out our latest analysis for Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd

Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last five years Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd saw its revenue shrink by 3.3% per year. That's not what investors generally want to see. If a business loses money, you want it to grow, so no surprises that the share price has dropped 11% each year in that time. It takes a certain kind of mental fortitude (or recklessness) to buy shares in a company that loses money and doesn't grow revenue. Fear of becoming a 'bagholder' may be keeping people away from this stock.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 15% in the last year, Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd shareholders lost 50%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 11% 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 Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd .

We will like Shaanxi Broadcast & TV Network Intermediary(Group)Co.Ltd 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.