Lingbao Gold Group (HKG:3330) Share Prices Have Dropped 21% In The Last Three Years

Lingbao Gold Group Company Ltd. (HKG:3330) shareholders should be happy to see the share price up 18% in the last month. But that cannot eclipse the less-than-impressive returns over the last three years. Truth be told the share price declined 21% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

Check out our latest analysis for Lingbao Gold Group

Because Lingbao Gold Group 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. Shareholders of unprofitable companies usually expect strong revenue growth. 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 three years, Lingbao Gold Group saw its revenue grow by 6.2% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. Indeed, the stock dropped 7% over the last three years. If revenue growth accelerates, we might see the share price bounce. But ultimately the key will be whether the company can become profitability.

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

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

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Lingbao Gold Group's 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. Lingbao Gold Group's TSR of was a loss of 8.8% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Lingbao Gold Group shareholders gained a total return of 3.2% during the year. 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 0.4% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Lingbao Gold Group better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Lingbao Gold Group you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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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