Investors are understandably disappointed when a stock they own declines in value. But it's hard to avoid some disappointing investments when the overall market is down. While the Tangrenshen Group Co., Ltd (SZSE:002567) share price is down 23% in the last three years, the total return to shareholders (which includes dividends) was -21%. And that total return actually beats the market decline of 27%. And the share price decline continued over the last week, dropping some 10%. However, this move may have been influenced by the broader market, which fell 5.6% in that time.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

See our latest analysis for Tangrenshen Group

Given that Tangrenshen Group 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last three years, Tangrenshen Group saw its revenue grow by 16% per year, compound. That's a pretty good rate of top-line growth. While the share price drop of 7%, compound, over three years certainly won't delight holders, it's actually not too bad. Sentiment towards the company will likely improve if it can maintain its revenue growth When you buy a good quality growth stock before it becomes popular, you can do very well.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Tangrenshen Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Although it hurts that Tangrenshen Group returned a loss of 16% in the last twelve months, the broader market was actually worse, returning a loss of 21%. Of course, the long term returns are far more important and the good news is that over five years, the stock has returned 2% for each year. 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. For instance, we've identified 2 warning signs for Tangrenshen Group (1 is a bit unpleasant) that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.