51 Credit Card (HKG:2051) Share Prices Have Dropped 39% In The Last Year

It is a pleasure to report that the 51 Credit Card Inc. (HKG:2051) is up 52% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 39% in the last year, well below the market return.

See our latest analysis for 51 Credit Card

51 Credit Card 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.

51 Credit Card's revenue didn't grow at all in the last year. In fact, it fell 73%. That looks like a train-wreck result to investors far and wide. No surprise, then, that the share price fell 39% over the year. It's always work digging deeper, but we'd probably need to see a strong balance sheet and bottom line improvements to get interested in this one.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While 51 Credit Card shareholders are down 39% for the year, the market itself is up 25%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Putting aside the last twelve months, it's good to see the share price has rebounded by 52%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand 51 Credit Card better, we need to consider many other factors. For example, we've discovered 2 warning signs for 51 Credit Card that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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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. 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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