If you love investing in stocks you're bound to buy some losers. Long term Jiangxi Firstar Panel Technology Co.,Ltd. (SZSE:300256) shareholders know that all too well, since the share price is down considerably over three years. So they might be feeling emotional about the 53% share price collapse, in that time. More recently, the share price has dropped a further 11% in a month. We do note, however, that the broader market is down 5.2% in that period, and this may have weighed on the share price.

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

Check out our latest analysis for Jiangxi Firstar Panel TechnologyLtd

Because Jiangxi Firstar Panel TechnologyLtd made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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 the last three years Jiangxi Firstar Panel TechnologyLtd saw its revenue shrink by 72% per year. That's definitely a weaker result than most pre-profit companies report. With no profits and falling revenue it is no surprise that investors have been dumping the stock, pushing the price down by 15% per year over that time. When revenue is dropping, and losses are still costing, and the share price sinking fast, it's fair to ask if something is remiss. It could be a while before the company repays long suffering shareholders with share price gains.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Jiangxi Firstar Panel TechnologyLtd has rewarded shareholders with a total shareholder return of 2.1% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 0.7% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. You could get a better understanding of Jiangxi Firstar Panel TechnologyLtd's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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.