Investors can earn very close to the average market return by buying an index fund. In contrast individual stocks will provide a wide range of possible returns, and may fall short. For example, the Icicle Group Holdings Limited (HKG:8429) share price fell 19% in the last year, slightly below the market return of around -17%. Because Icicle Group Holdings hasn’t been listed for many years, the market is still learning about how the business performs. Unhappily, the share price slid 1.8% in the last week.
See our latest analysis for Icicle Group Holdings
Given that Icicle Group Holdings 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. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In just one year Icicle Group Holdings saw its revenue fall by 11%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 19% in that time. What would you expect when revenue is falling, and it doesn’t make a profit? We think most holders must believe revenue growth will improve, or else costs will decline.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
SEHK:8429 Income Statement April 8th 2020
Take a more thorough look at Icicle Group Holdings’s financial health with this free report on its balance sheet.
A Different Perspective
We doubt Icicle Group Holdings shareholders are happy with the loss of 19% over twelve months. That falls short of the market, which lost 17%. That’s disappointing, but it’s worth keeping in mind that the market-wide selling wouldn’t have helped. The share price decline has continued throughout the most recent three months, down 15%, 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. It’s always interesting to track share price performance over the longer term. But to understand Icicle Group Holdings better, we need to consider many other factors. Case in point: We’ve spotted 3 warning signs for Icicle Group Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.
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 HK exchanges.
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.
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. Thank you for reading.