Would Shareholders Who Purchased Value Convergence Holdings' (HKG:821) Stock Five Years Be Happy With The Share price Today?

Some stocks are best avoided. We really hate to see fellow investors lose their hard-earned money. Spare a thought for those who held Value Convergence Holdings Limited (HKG:821) for five whole years - as the share price tanked 76%. More recently, the share price has dropped a further 18% in a month.

Check out our latest analysis for Value Convergence Holdings

Because Value Convergence Holdings 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. Shareholders of unprofitable companies usually expect strong 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 five years Value Convergence Holdings saw its revenue shrink by 18% per 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. We don't think this is a particularly promising picture. 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).

This free interactive report on Value Convergence Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Value Convergence Holdings shareholders are down 4.4% for the year, but the market itself is up 6.1%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, longer term shareholders are suffering worse, given the loss of 12% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. It's always interesting to track share price performance over the longer term. But to understand Value Convergence Holdings better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Value Convergence Holdings you should be aware of, and 1 of them is significant.

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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