Investors Who Bought ZhongAn Online P & C Insurance (HKG:6060) Shares A Year Ago Are Now Down 50%

While it may not be enough for some shareholders, we think it is good to see the ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060) share price up 18% in a single quarter. But that's small comfort given the dismal price performance over the last year. Like an arid lake in a warming world, shareholder value has evaporated, with the share price down 50% in that time. The share price recovery is not so impressive when you consider the fall. Arguably, the fall was overdone.

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

ZhongAn Online P & C Insurance isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

ZhongAn Online P & C Insurance grew its revenue by 73% over the last year. That's well above most other pre-profit companies. In contrast the share price is down 50% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.

You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).

Take a more thorough look at ZhongAn Online P & C Insurance's financial health with this freereport on its balance sheet.

A Different Perspective

ZhongAn Online P & C Insurance shareholders are down 50% for the year, even worse than the market loss of 1.6%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's great to see a nice little 18% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: ZhongAn Online P & C Insurance may not be the best stock to buy. So take a peek at this freelist of interesting companies with past earnings growth (and further growth forecast).

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.