Zhejiang East Crystal ElectronicLtd (SZSE:002199 investor five-year losses grow to 61% as the stock sheds CN¥222m this past week

We think intelligent long term investing is the way to go. But unfortunately, some companies simply don't succeed. For example, after five long years the Zhejiang East Crystal Electronic Co.,Ltd. (SZSE:002199) share price is a whole 61% lower. That's not a lot of fun for true believers. And some of the more recent buyers are probably worried, too, with the stock falling 39% in the last year. Shareholders have had an even rougher run lately, with the share price down 28% in the last 90 days.

If the past week is anything to go by, investor sentiment for Zhejiang East Crystal ElectronicLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Zhejiang East Crystal ElectronicLtd

Because Zhejiang East Crystal ElectronicLtd 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.

In the last five years Zhejiang East Crystal ElectronicLtd saw its revenue shrink by 2.5% per 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.

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

If you are thinking of buying or selling Zhejiang East Crystal ElectronicLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market lost about 10% in the twelve months, Zhejiang East Crystal ElectronicLtd shareholders did even worse, losing 39%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. 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. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Zhejiang East Crystal ElectronicLtd better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Zhejiang East Crystal ElectronicLtd .

But note: Zhejiang East Crystal ElectronicLtd 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.