Stock Analysis

Fujian Cosunter Pharmaceutical (SZSE:300436 investor three-year losses grow to 56% as the stock sheds CN¥285m this past week

SZSE:300436
Source: Shutterstock

The truth is that if you invest for long enough, you're going to end up with some losing stocks. Long term Fujian Cosunter Pharmaceutical Co., Ltd. (SZSE:300436) shareholders know that all too well, since the share price is down considerably over three years. So they might be feeling emotional about the 56% share price collapse, in that time. And more recent buyers are having a tough time too, with a drop of 45% in the last year. Shareholders have had an even rougher run lately, with the share price down 21% in the last 90 days.

After losing 11% 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 Fujian Cosunter Pharmaceutical

Given that Fujian Cosunter Pharmaceutical 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. 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.

Over three years, Fujian Cosunter Pharmaceutical grew revenue at 4.1% per year. Given it's losing money in pursuit of growth, we are not really impressed with that. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 16% during the period. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). After all, growing a business isn't easy, and the process will not always be smooth.

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

earnings-and-revenue-growth
SZSE:300436 Earnings and Revenue Growth June 6th 2024

Take a more thorough look at Fujian Cosunter Pharmaceutical's financial health with this free report on its balance sheet.

A Different Perspective

We regret to report that Fujian Cosunter Pharmaceutical shareholders are down 45% for the year. Unfortunately, that's worse than the broader market decline of 10%. 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. 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. 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 Fujian Cosunter Pharmaceutical better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Fujian Cosunter Pharmaceutical .

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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.