It's understandable if you feel frustrated when a stock you own sees a lower share price. But often it is not a reflection of the fundamental business performance. So while the Goldenmax International Group Ltd. (SZSE:002636) share price is down 14% in the last year, the total return to shareholders (which includes dividends) was -13%. And that total return actually beats the market decline of 21%. At least the damage isn't so bad if you look at the last three years, since the stock is down 7.3% in that time. In the last ninety days we've seen the share price slide 19%. However, one could argue that the price has been influenced by the general market, which is down 9.2% in the same timeframe.

If the past week is anything to go by, investor sentiment for Goldenmax International Group isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Goldenmax International Group

We don't think that Goldenmax International Group's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In just one year Goldenmax International Group saw its revenue fall by 11%. That looks pretty grim, at a glance. The stock is down just 14% over twelve months, which is not bad all things considered. So it seems that the market saw the weak revenue coming, and isn't worried. It could be interesting to study this stock more closely - when will it generate profits?

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

While it's never nice to take a loss, Goldenmax International Group shareholders can take comfort that , including dividends,their trailing twelve month loss of 13% wasn't as bad as the market loss of around 21%. Longer term investors wouldn't be so upset, since they would have made 0.1%, each year, over five years. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. 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. Even so, be aware that Goldenmax International Group is showing 3 warning signs in our investment analysis , and 2 of those shouldn't be ignored...

Of course Goldenmax International Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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