The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. For example, the Qingdao Zhongzi Zhongcheng Group Co.,Ltd. (SZSE:300208) share price is down 24% in the last year. That falls noticeably short of the market decline of around 9.4%. On the bright side, the stock is actually up 1.9% in the last three years. Furthermore, it's down 12% in about a quarter. That's not much fun for holders. But this could be related to the weak market, which is down 5.5% in the same period.

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

Check out our latest analysis for Qingdao Zhongzi Zhongcheng GroupLtd

Qingdao Zhongzi Zhongcheng GroupLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good 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 just one year Qingdao Zhongzi Zhongcheng GroupLtd saw its revenue fall by 19%. That's not what investors generally want to see. The stock price has languished lately, falling 24% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We regret to report that Qingdao Zhongzi Zhongcheng GroupLtd shareholders are down 24% for the year. Unfortunately, that's worse than the broader market decline of 9.4%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 0.9% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Qingdao Zhongzi Zhongcheng GroupLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Qingdao Zhongzi Zhongcheng GroupLtd that you should be aware of.

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 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.