While Universal Technologies Holdings (HKG:1026) shareholders have made 14% in 3 years, increasing losses might now be front of mind as stock sheds 14% this week

It's been a soft week for Universal Technologies Holdings Limited (HKG:1026) shares, which are down 14%. In contrast the stock is up over the last three years. However, it's unlikely many shareholders are elated with the share price gain of 14% over that time, given the rising market.

Since the long term performance has been good but there's been a recent pullback of 14%, let's check if the fundamentals match the share price.

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Universal Technologies 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Universal Technologies Holdings saw its revenue shrink by 5.5% per year. Despite the lack of revenue growth, the stock has returned 4%, compound, over three years. Unless the company is going to make profits soon, we would be pretty cautious about it.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Universal Technologies Holdings shareholders gained a total return of 9.6% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 2% over half a decade This suggests the company might be improving over time. 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. To that end, you should learn about the 3 warning signs we've spotted with Universal Technologies Holdings (including 1 which is potentially serious) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.