Further weakness as Y.U.D.Yangtze River Investment IndustryLtd (SHSE:600119) drops 12% this week, taking three-year losses to 12%

Investors are understandably disappointed when a stock they own declines in value. But it can difficult to make money in a declining market. The Y.U.D.Yangtze River Investment Industry Co.,Ltd. (SHSE:600119) share price is down 12% in the last three years. On the bright side, that's better than the market decline of 19%. Unfortunately the last month hasn't been any better, with the share price down 23%.

With the stock having lost 12% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for Y.U.D.Yangtze River Investment IndustryLtd

Because Y.U.D.Yangtze River Investment IndustryLtd 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 the last three years, Y.U.D.Yangtze River Investment IndustryLtd saw its revenue grow by 20% per year, compound. That is faster than most pre-profit companies. It saw its share price decline by 4% per year over the last three. Given the revenue growth, it may simply be that the stock is suffering from market conditions. That means now could be exactly the right time to take a closer look at this business. Could the current price be an opportunity?

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on Y.U.D.Yangtze River Investment IndustryLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Y.U.D.Yangtze River Investment IndustryLtd shareholders have received a total shareholder return of 0.5% over one year. That certainly beats the loss of about 1.7% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Y.U.D.Yangtze River Investment IndustryLtd better, we need to consider many other factors. Take risks, for example - Y.U.D.Yangtze River Investment IndustryLtd has 1 warning sign we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.