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Kingenta Ecological Engineering Group (SZSE:002470 Investor Three-year Losses Grow to 34% as the Stock Sheds CN¥822m This Past Week

Simply Wall St ·  Dec 25 19:26

It is doubtless a positive to see that the Kingenta Ecological Engineering Group Co., Ltd. (SZSE:002470) share price has gained some 33% in the last three months. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 34% in the last three years, significantly under-performing the market.

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

Because Kingenta Ecological Engineering Group 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 hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years, Kingenta Ecological Engineering Group's revenue dropped 5.6% per year. That's not what investors generally want to see. The stock has disappointed holders over the last three years, falling 10%, annualized. That makes sense given the lack of either profits or revenue growth. Of course, sentiment could become too negative, and the company may actually be making progress to profitability.

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

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SZSE:002470 Earnings and Revenue Growth December 26th 2024

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

A Different Perspective

Kingenta Ecological Engineering Group's TSR for the year was broadly in line with the market average, at 14%. To take a positive view, the gain is pleasing, and it sure beats annualized TSR loss of 5%, which was endured over half a decade. While 'turnarounds seldom turn' there are green shoots for Kingenta Ecological Engineering Group. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

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 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.

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