JS Global Lifestyle (HKG:1691) stock falls 6.9% in past week as five-year earnings and shareholder returns continue downward trend

Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Imagine if you held JS Global Lifestyle Company Limited (HKG:1691) for half a decade as the share price tanked 80%. Even worse, it's down 11% in about a month, which isn't fun at all.

If the past week is anything to go by, investor sentiment for JS Global Lifestyle isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

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Given that JS Global Lifestyle only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over half a decade JS Global Lifestyle reduced its trailing twelve month revenue by 19% for each year. That puts it in an unattractive cohort, to put it mildly. So it's not altogether surprising to see the share price down 12% per year in the same time period. This kind of price performance makes us very wary, especially when combined with falling revenue. Of course, the poor performance could mean the market has been too severe selling down. That can happen.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think JS Global Lifestyle will earn in the future (free profit forecasts).

What About The Total Shareholder Return (TSR)?

We've already covered JS Global Lifestyle's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. JS Global Lifestyle's TSR of was a loss of 78% for the 5 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

JS Global Lifestyle provided a TSR of 14% over the last twelve months. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 12% per year, over five years. So this might be a sign the business has turned its fortunes around. 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. For example, we've discovered 2 warning signs for JS Global Lifestyle that you should be aware of before investing here.

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong 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.