ZACD Group's (HKG:8313) Stock Price Has Reduced 20% In The Past Year

While not a mind-blowing move, it is good to see that the ZACD Group Ltd. (HKG:8313) share price has gained 23% in the last three months. But that is minimal compensation for the share price under-performance over the last year. In fact, the price has declined 20% in a year, falling short of the returns you could get by investing in an index fund.

Check out our latest analysis for ZACD Group

ZACD Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year ZACD Group saw its revenue grow by 27%. We think that is pretty nice growth. Meanwhile, the share price is down 20% over twelve months, which is disappointing given the progress made. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

Given that the market gained 5.6% in the last year, ZACD Group shareholders might be miffed that they lost 20% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 23% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. 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. Take risks, for example - ZACD Group has 2 warning signs (and 1 which can't be ignored) we think you should know about.

We will like ZACD Group 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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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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