Investors in ZhongAn Online P & C Insurance (HKG:6060) have unfortunately lost 66% over the last five years

Statistically speaking, long term investing is a profitable endeavour. But along the way some stocks are going to perform badly. For example the ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060) share price dropped 66% over five years. That's an unpleasant experience for long term holders.

Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.

Check out our latest analysis for ZhongAn Online P & C Insurance

Because ZhongAn Online P & C Insurance 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last half decade, ZhongAn Online P & C Insurance saw its revenue increase by 28% per year. That's well above most other pre-profit companies. Unfortunately for shareholders the share price has dropped 11% per year - disappointing considering the growth. This could mean high expectations have been tempered, potentially because investors are looking to the bottom line. If you think the company can keep up its revenue growth, you'd have to consider the possibility that there's an opportunity here.

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

ZhongAn Online P & C Insurance is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling ZhongAn Online P & C Insurance stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

We're pleased to report that ZhongAn Online P & C Insurance shareholders have received a total shareholder return of 2.2% over one year. There's no doubt those recent returns are much better than the TSR loss of 11% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. You could get a better understanding of ZhongAn Online P & C Insurance's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Of course ZhongAn Online P & C Insurance 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. 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.