Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held Beaver Group (Holding) Company Limited (HKG:8275) over the last year knows what a loser feels like. The share price has slid 62% in that time. Beaver Group (Holding) hasn’t been listed for long, so although we’re wary of recent listings that perform poorly, it may still prove itself with time. Even worse, it’s down 40% in about a month, which isn’t fun at all.
View our latest analysis for Beaver Group (Holding)
Given that Beaver Group (Holding) didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Beaver Group (Holding)’s revenue didn’t grow at all in the last year. In fact, it fell 33%. That looks pretty grim, at a glance. The share price drop of 62% is understandable given the company doesn’t have profits to boast of. Having said that, if growth is coming in the future, the stock may have better days ahead. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling Beaver Group (Holding) stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Beaver Group (Holding) shareholders are down 62% for the year, even worse than the market loss of 20%. There’s no doubt that’s a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 29%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we’d remain pretty wary until we see some strong business performance. 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. Take risks, for example – Beaver Group (Holding) has 5 warning signs (and 3 which are a bit unpleasant) 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 HK exchanges.
If you spot an error that warrants correction, please contact the editor at [email protected] 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.
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