Broncus Holding (HKG:2216 shareholders incur further losses as stock declines 10% this week, taking one-year losses to 61%

The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Broncus Holding Corporation (HKG:2216) have suffered share price declines over the last year. The share price has slid 61% in that time. We wouldn't rush to judgement on Broncus Holding because we don't have a long term history to look at. The falls have accelerated recently, with the share price down 34% in the last three months.

After losing 10% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

See our latest analysis for Broncus Holding

Given that Broncus Holding didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 just one year Broncus Holding saw its revenue fall by 14%. That's not what investors generally want to see. In the absence of profits, it's not unreasonable that the share price fell 61%. Having said that, if growth is coming in the future, the stock may have better days ahead. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

We doubt Broncus Holding shareholders are happy with the loss of 61% over twelve months. That falls short of the market, which lost 1.0%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 34% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. 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 Broncus Holding you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.