Stock Analysis

5i5j Holding Group (SZSE:000560) shareholders are up 17% this past week, but still in the red over the last five years

SZSE:000560
Source: Shutterstock

5i5j Holding Group Co., Ltd. (SZSE:000560) shareholders will doubtless be very grateful to see the share price up 63% in the last quarter. But if you look at the last five years the returns have not been good. After all, the share price is down 46% in that time, significantly under-performing the market.

The recent uptick of 17% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for 5i5j Holding Group

Given that 5i5j Holding Group 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.

In the last half decade, 5i5j Holding Group saw its revenue increase by 3.3% per year. That's far from impressive given all the money it is losing. Given the weak growth, the share price fall of 8% isn't particularly surprising. The key question is whether the company can make it to profitability, and beyond, without trouble. It could be worth putting it on your watchlist and revisiting when it makes its maiden profit.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
SZSE:000560 Earnings and Revenue Growth July 18th 2024

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

We're pleased to report that 5i5j Holding Group shareholders have received a total shareholder return of 1.1% over one year. Notably the five-year annualised TSR loss of 8% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand 5i5j Holding Group better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with 5i5j Holding Group (including 1 which is a bit concerning) .

We will like 5i5j Holding Group 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.