Did You Manage To Avoid Tianli Holdings Group's (HKG:117) Devastating 77% Share Price Drop?

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Every investor on earth makes bad calls sometimes. But you want to avoid the really big losses like the plague. So consider, for a moment, the misfortune of Tianli Holdings Group Limited (HKG:117) investors who have held the stock for three years as it declined a whopping 77%. That would be a disturbing experience. And the ride hasn't got any smoother in recent times over the last year, with the price 31% lower in that time. Furthermore, it's down 26% in about a quarter. That's not much fun for holders.

See our latest analysis for Tianli Holdings Group

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Tianli Holdings Group became profitable within the last five years. We would usually expect to see the share price rise as a result. So it's worth looking at other metrics to try to understand the share price move.

We note that, in three years, revenue has actually grown at a 32% annual rate, so that doesn't seem to be a reason to sell shares. It's probably worht worth investigating Tianli Holdings Group further; while we may be missing something on this analysis, there might also be an opportunity.

Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.

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

A Different Perspective

Tianli Holdings Group shareholders are down 31% for the year, falling short of the market return. The market shed around 13%, no doubt weighing on the stock price. However, the loss over the last year isn't as bad as the 39% per annum loss investors have suffered over the last three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. You could get a better understanding of Tianli Holdings Group's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.