Further weakness as BEH-PropertyLtd (SHSE:600791) drops 10% this week, taking five-year losses to 33%

The main aim of stock picking is to find the market-beating stocks. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in BEH-Property Co.,Ltd. (SHSE:600791), since the last five years saw the share price fall 33%. And it's not just long term holders hurting, because the stock is down 23% in the last year. Shareholders have had an even rougher run lately, with the share price down 32% in the last 90 days.

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

Check out our latest analysis for BEH-PropertyLtd

Given that BEH-PropertyLtd 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over five years, BEH-PropertyLtd grew its revenue at 51% per year. That's better than most loss-making companies. Shareholders are no doubt disappointed with the loss of 6%, each year, in that time. So you might argue the BEH-PropertyLtd should get more credit for its rather impressive revenue growth over the period. If that's the case, now might be the smart time to take a close look at it.

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

Take a more thorough look at BEH-PropertyLtd's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market lost about 17% in the twelve months, BEH-PropertyLtd shareholders did even worse, losing 22% (even including dividends). 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 6% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with BEH-PropertyLtd , and understanding them should be part of your investment process.

For those who like to find winning investments this free list of growing 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.