Loss-making BEH-PropertyLtd (SHSE:600791) has seen earnings and shareholder returns follow the same downward trajectory over past -12%

It's normal to be annoyed when stock you own has a declining share price. But often it is not a reflection of the fundamental business performance. Over the year the BEH-Property Co.,Ltd. (SHSE:600791) share price fell 12%. However, that's better than the market's overall decline of 14%. On the other hand, the stock is actually up 3.4% over three years.

On a more encouraging note the company has added CN¥163m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

BEH-PropertyLtd's revenue didn't grow at all in the last year. In fact, it fell 41%. That's not what investors generally want to see. The stock price only fell 12% in that period, not a bad result. So it seems that the market saw the weak revenue coming, and isn't worried. It could be interesting to study this stock more closely - when will it generate profits?

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

Although it hurts that BEH-PropertyLtd returned a loss of 12% in the last twelve months, the broader market was actually worse, returning a loss of 14%. Longer term investors wouldn't be so upset, since they would have made 1.3%, each year, over five years. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. It's always interesting to track share price performance over the longer term. But to understand BEH-PropertyLtd better, we need to consider many other factors. Even so, be aware that BEH-PropertyLtd is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.