Loss-making Beijing Join-Cheer Software (SZSE:002279) sheds a further CN¥394m, taking total shareholder losses to 39% over 1 year

It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Investors in Beijing Join-Cheer Software Co., Ltd. (SZSE:002279) have tasted that bitter downside in the last year, as the share price dropped 39%. That falls noticeably short of the market decline of around 12%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 25% in three years. The falls have accelerated recently, with the share price down 19% in the last three months.

After losing 9.5% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

Check out our latest analysis for Beijing Join-Cheer Software

Because Beijing Join-Cheer Software made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Beijing Join-Cheer Software grew its revenue by 36% over the last year. We think that is pretty nice growth. Meanwhile, the share price is down 39% over twelve months, which is disappointing given the progress made. This implies the market was expecting better growth. But if revenue keeps growing, then at a certain point the share price would likely follow.

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 Beijing Join-Cheer Software's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market lost about 12% in the twelve months, Beijing Join-Cheer Software shareholders did even worse, losing 39%. 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. You could get a better understanding of Beijing Join-Cheer Software's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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.