Loss-making Shenzhen Kexin Communication TechnologiesLtd (SZSE:300565) has seen earnings and shareholder returns follow the same downward trajectory over past -45%

While it may not be enough for some shareholders, we think it is good to see the Shenzhen Kexin Communication Technologies Co.,Ltd (SZSE:300565) share price up 16% in a single quarter. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 45% in the last year, significantly under-performing the market.

While the stock has risen 13% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

View our latest analysis for Shenzhen Kexin Communication TechnologiesLtd

Shenzhen Kexin Communication TechnologiesLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong 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.

In just one year Shenzhen Kexin Communication TechnologiesLtd saw its revenue fall by 38%. That looks pretty grim, at a glance. The stock price has languished lately, falling 45% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

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 Shenzhen Kexin Communication TechnologiesLtd's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market lost about 15% in the twelve months, Shenzhen Kexin Communication TechnologiesLtd shareholders did even worse, losing 45%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 3% per year over five years. 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Shenzhen Kexin Communication TechnologiesLtd is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

Of course Shenzhen Kexin Communication TechnologiesLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.

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