Further weakness as Beijing Hualian Department Store (SZSE:000882) drops 14% this week, taking five-year losses to 58%

Generally speaking long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. For example the Beijing Hualian Department Store Co., Ltd (SZSE:000882) share price dropped 58% over five years. That's not a lot of fun for true believers. We also note that the stock has performed poorly over the last year, with the share price down 24%. The falls have accelerated recently, with the share price down 23% in the last three months.

With the stock having lost 14% 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 Beijing Hualian Department Store

Given that Beijing Hualian Department Store 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. 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 half a decade Beijing Hualian Department Store reduced its trailing twelve month revenue by 1.8% for each year. While far from catastrophic that is not good. With neither profit nor revenue growth, the loss of 10% per year doesn't really surprise us. The chance of imminent investor enthusiasm for this stock seems slimmer than Louise Brooks. Ultimately, it may be worth watching - should revenue pick up, the share price might follow.

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

If you are thinking of buying or selling Beijing Hualian Department Store stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We regret to report that Beijing Hualian Department Store shareholders are down 24% for the year. Unfortunately, that's worse than the broader market decline of 20%. 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 10% 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. For example, we've discovered 1 warning sign for Beijing Hualian Department Store that you should be aware of before investing here.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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.