A Look At Huanxi Media Group's (HKG:1003) Share Price Returns

Huanxi Media Group Limited (HKG:1003) shareholders should be happy to see the share price up 12% in the last month. But if you look at the last five years the returns have not been good. After all, the share price is down 31% in that time, significantly under-performing the market.

Check out our latest analysis for Huanxi Media Group

Because Huanxi Media 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last half decade, Huanxi Media Group saw its revenue increase by 40% per year. That's better than most loss-making companies. The share price drop of 6% per year over five years would be considered let down. So you might argue the Huanxi Media Group should get more credit for its rather impressive revenue growth over the period. If that's the case, now might be the smart time to take a close look at it.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Huanxi Media Group's earnings, revenue and cash flow.

A Different Perspective

Investors in Huanxi Media Group had a tough year, with a total loss of 1.4%, against a market gain of about 9.9%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, longer term shareholders are suffering worse, given the loss of 6% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. 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. Take risks, for example - Huanxi Media Group has 1 warning sign we think you should be aware of.

Huanxi Media Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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