Stock Analysis

Shareholders in Huizhou Speed Wireless TechnologyLtd (SZSE:300322) have lost 42%, as stock drops 10% this past week

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SZSE:300322

Ideally, your overall portfolio should beat the market average. But every investor is virtually certain to have both over-performing and under-performing stocks. So we wouldn't blame long term Huizhou Speed Wireless Technology Co.,Ltd. (SZSE:300322) shareholders for doubting their decision to hold, with the stock down 42% over a half decade. Unfortunately the share price momentum is still quite negative, with prices down 20% in thirty days.

After losing 10% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Huizhou Speed Wireless TechnologyLtd

Huizhou Speed Wireless TechnologyLtd wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong 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.

In the last five years Huizhou Speed Wireless TechnologyLtd saw its revenue shrink by 2.1% per year. While far from catastrophic that is not good. The share price decline at a rate of 7% per year is disappointing. But it doesn't surprise given the falling revenue. Without profits, its hard to see how shareholders win if the revenue keeps falling.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

SZSE:300322 Earnings and Revenue Growth June 7th 2024

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

A Different Perspective

While it's certainly disappointing to see that Huizhou Speed Wireless TechnologyLtd shares lost 3.3% throughout the year, that wasn't as bad as the market loss of 12%. Of far more concern is the 7% p.a. loss served to shareholders over the last five years. This sort of share price action isn't particularly encouraging, but at least the losses are slowing. It's always interesting to track share price performance over the longer term. But to understand Huizhou Speed Wireless TechnologyLtd better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Huizhou Speed Wireless TechnologyLtd .

We will like Huizhou Speed Wireless TechnologyLtd 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.

Valuation is complex, but we're here to simplify it.

Discover if Huizhou Speed Wireless TechnologyLtd might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.