Kuang Hong Arts Management Incorporation's(GTSM:6596) Share Price Is Down 27% Over The Past Year.

Kuang Hong Arts Management Incorporation (GTSM:6596) shareholders should be happy to see the share price up 10% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. The cold reality is that the stock has dropped 27% in one year, under-performing the market.

View our latest analysis for Kuang Hong Arts Management Incorporation

We don't think that Kuang Hong Arts Management Incorporation's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In just one year Kuang Hong Arts Management Incorporation saw its revenue fall by 59%. If you think that's a particularly bad result, you're statistically on the money Meanwhile, the share price dropped by 27%. We would want to see improvements in the core business, and diminishing losses, before getting too excited about this one.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Kuang Hong Arts Management Incorporation's TSR for the last year was -21%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Kuang Hong Arts Management Incorporation shareholders are down 21% for the year, (even including dividends), but the broader market is up 31%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Investors are up over three years, booking 4% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. It's always interesting to track share price performance over the longer term. But to understand Kuang Hong Arts Management Incorporation better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Kuang Hong Arts Management Incorporation you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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