Stock Analysis

Even after rising 16% this past week, Synthesis Electronic TechnologyLtd (SZSE:300479) shareholders are still down 15% over the past year

SZSE:300479
Source: Shutterstock

Synthesis Electronic Technology Co.,Ltd. (SZSE:300479) shareholders should be happy to see the share price up 16% in the last month. In contrast, the stock is down for the year. But at least it bettered the loss of 16% in its market.

Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.

Check out our latest analysis for Synthesis Electronic TechnologyLtd

Given that Synthesis Electronic 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.

Synthesis Electronic TechnologyLtd's revenue didn't grow at all in the last year. In fact, it fell 14%. That looks pretty grim, at a glance. The stock is down just 15% over twelve months, which is not bad all things considered. So it seems that the market saw the weak revenue coming, and isn't worried. It could be interesting to study this stock more closely - when will it generate profits?

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
SZSE:300479 Earnings and Revenue Growth June 26th 2024

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Synthesis Electronic TechnologyLtd shareholders are down 15% over twelve months, which isn't far from the market return of -16%. Longer term investors wouldn't be so upset, since they would have made 1.8%, each year, over five years. If the stock price has been impacted by changing sentiment, rather than deteriorating business conditions, it could spell opportunity. It's always interesting to track share price performance over the longer term. But to understand Synthesis Electronic TechnologyLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Synthesis Electronic TechnologyLtd you should know about.

We will like Synthesis Electronic 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.

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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.