Besunyen Holdings' (HKG:926) Shareholders Are Down 32% On Their Investment Over The Past Five Years.

Besunyen Holdings Company Limited (HKG:926) shareholders will doubtless be very grateful to see the share price up 32% in the last month. But that doesn't change the fact that the returns over the last five years have been less than pleasing. In fact, the share price is down 56%, which falls well short of the return you could get by buying an index fund.

Check out our latest analysis for Besunyen Holdings

Given that Besunyen Holdings 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 five years, Besunyen Holdings grew its revenue at 6.1% per year. That's a pretty good rate for a long time period. The share price return isn't so respectable with an annual loss of 9% over the period. It seems probably that the business has failed to live up to initial expectations. That could lead to an opportunity if the company is going to become profitable sooner rather than later.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

If you are thinking of buying or selling Besunyen Holdings stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Besunyen Holdings' total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Besunyen Holdings' TSR of was a loss of 32% for the 5 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Besunyen Holdings provided a TSR of 4.2% 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 6% per year, over five years. It could well be that the business is stabilizing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Besunyen Holdings you should know about.

Of course Besunyen Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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