Shareholders in EGing Photovoltaic TechnologyLtd (SHSE:600537) have lost 27%, as stock drops 9.7% this past week

EGing Photovoltaic Technology Co.,Ltd. (SHSE:600537) shareholders will doubtless be very grateful to see the share price up 47% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. After all, the share price is down 27% in the last year, significantly under-performing the market.

Since EGing Photovoltaic TechnologyLtd has shed CN¥427m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for EGing Photovoltaic TechnologyLtd

Given that EGing Photovoltaic TechnologyLtd 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.

EGing Photovoltaic TechnologyLtd's revenue didn't grow at all in the last year. In fact, it fell 61%. That looks like a train-wreck result to investors far and wide. No surprise, then, that the share price fell 27% over the year. We would want to see improvements in the core business, and diminishing losses, before getting too excited about this one.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at EGing Photovoltaic TechnologyLtd's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market gained around 12% in the last year, EGing Photovoltaic TechnologyLtd shareholders lost 27%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 1.4%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: EGing Photovoltaic TechnologyLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.