While not a mind-blowing move, it is good to see that the World Houseware (Holdings) Limited (HKG:713) share price has gained 14% in the last three months. But that doesn’t change the fact that the returns over the last year have been less than pleasing. In fact the stock is down 31% in the last year, well below the market return.
World Houseware (Holdings) 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 expect strong revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
World Houseware (Holdings) grew its revenue by 15% over the last year. That’s definitely a respectable growth rate. Unfortunately that wasn’t good enough to stop the share price dropping 31%. This implies the market was expecting better growth. But if revenue keeps growing, then at a certain point the share price would likely follow.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
This free interactive report on World Houseware (Holdings)’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
While the broader market lost about 6.6% in the twelve months, World Houseware (Holdings) shareholders did even worse, losing 31%. 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. Longer term investors wouldn’t be so upset, since they would have made 5.4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
We will like World Houseware (Holdings) better if we see some big insider buys. While we wait, check out this free list of growing companies 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 HK exchanges.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.