China Beidahuang Industry Group Holdings (HKG:39 shareholders incur further losses as stock declines 11% this week, taking five-year losses to 69%

Statistically speaking, long term investing is a profitable endeavour. But along the way some stocks are going to perform badly. For example, after five long years the China Beidahuang Industry Group Holdings Limited (HKG:39) share price is a whole 69% lower. We certainly feel for shareholders who bought near the top. And it's not just long term holders hurting, because the stock is down 61% in the last year. The falls have accelerated recently, with the share price down 29% in the last three months.

If the past week is anything to go by, investor sentiment for China Beidahuang Industry Group Holdings isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for China Beidahuang Industry Group Holdings

China Beidahuang Industry 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over half a decade China Beidahuang Industry Group Holdings reduced its trailing twelve month revenue by 6.0% for each year. While far from catastrophic that is not good. The share price decline of 11% compound, over five years, is understandable given the company is losing money, and revenue is moving in the wrong direction. We don't think anyone is rushing to buy this stock. Ultimately, it may be worth watching - should revenue pick up, the share price might follow.

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 China Beidahuang Industry Group Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While the broader market lost about 8.0% in the twelve months, China Beidahuang Industry Group Holdings shareholders did even worse, losing 61%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 11% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand China Beidahuang Industry Group Holdings better, we need to consider many other factors. Take risks, for example - China Beidahuang Industry Group Holdings has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong 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.