Recent 18% pullback isn't enough to hurt long-term Media Asia Group Holdings (HKG:8075) shareholders, they're still up 85% over 1 year

Some Media Asia Group Holdings Limited (HKG:8075) shareholders are probably rather concerned to see the share price fall 39% over the last three months. But that doesn't change the reality that over twelve months the stock has done really well. To wit, it had solidly beat the market, up 85%.

While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

See our latest analysis for Media Asia Group Holdings

Media Asia Group Holdings wasn't profitable in the last twelve months, 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Media Asia Group Holdings saw its revenue grow by 26%. That's a fairly respectable growth rate. While the share price performed well, gaining 85% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But it's crucial to check profitability and cash flow before forming a view on the future.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Media Asia Group Holdings' financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Media Asia Group Holdings has rewarded shareholders with a total shareholder return of 85% in the last twelve months. Notably the five-year annualised TSR loss of 11% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Media Asia Group Holdings that you should be aware of.

Of course Media Asia Group Holdings 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.