Kingkey Financial International (Holdings) (HKG:1468) one-year losses have grown faster than shareholder returns have fallen, but the stock spikes 25% this past week

Kingkey Financial International (Holdings) Limited (HKG:1468) shareholders should be happy to see the share price up 25% in the last week. But that isn't much consolation to those who have suffered through the declines of the last year. During that time the share price has sank like a stone, descending 70%. Some might say the recent bounce is to be expected after such a bad drop. Arguably, the fall was overdone.

While the stock has risen 25% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for Kingkey Financial International (Holdings)

Kingkey Financial International (Holdings) wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Kingkey Financial International (Holdings) saw its revenue grow by 222%. That's a strong result which is better than most other loss making companies. Meanwhile, the share price slid 70%. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

While the broader market lost about 20% in the twelve months, Kingkey Financial International (Holdings) shareholders did even worse, losing 70%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 10%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Kingkey Financial International (Holdings) better, we need to consider many other factors. For instance, we've identified 3 warning signs for Kingkey Financial International (Holdings) (2 make us uncomfortable) that you should be aware of.

We will like Kingkey Financial International (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 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.