Beijing Highlander Digital Technology (SZSE:300065) fell 7.1% this week, bringing its one-year loss to 48%, further weakness.

The easiest way to profit from a rising market is to buy an index fund. Individual stocks can produce big gains, but there are also many stocks that don't produce satisfying returns. Beijing Highlander Digital Technology Co., Ltd. (SZSE:300065) has endured a bitter decline over the last year, with the share price falling 48%. That's unfortunate considering the market is down 10%. Looking at at least the past three years, the damage is less severe, with the share price falling 6.6%. The decline has accelerated recently, with the share price down 16% in the past three months.

Beijing Highlander Digital Technology's share price has fallen by 368 million yuan in the past seven days, so let's see if the long-term decline is due to the company's economic situation.

Read our latest analysis on Beijing Highlander Digital Technology

Beijing Highlander Digital Technology didn't make a profit in the last 12 months, so we'll look at revenue growth to get a quick view of how the business is developing. Generally, unprofitable companies are expected to grow their revenue at a respectable pace each year. Some companies delay profitability in order to grow revenue faster, in which case sales growth is expected to make up for the revenue shortfall.

Beijing Highlander Digital Technology's revenue didn't grow at all last year. In fact, it fell 13%, which is not what investors generally want to see. The share price has struggled recently, dropping 48% in one year. That's quite reasonable given the lack of both profit and revenue growth. Most shareholders must believe that revenue growth will improve or costs will fall.

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

It's worth noting that the CEO pay is lower than the average for companies of a similar size. While CEO pay is always worth keeping an eye on, the more important question is whether the company will be able to grow earnings over the next few years. Discover more about earnings by checking this interactive graph of Beijing Highlander Digital Technology's earnings, revenue and cash flow.

A different perspective

While the broader market has fallen about 10% over the twelve months, Beijing Highlander Digital Technology shareholders have fared worse, suffering a loss of 48%. That being said, it is inevitable that some stocks will become oversold in a falling market. The key is to keep an eye on fundamental developments. Unfortunately, last year's performance caps a bad run, with shareholders facing an annualized loss of 5% over five years. Generally speaking, a long-term share price downturn is a bad sign, but contrarian investors may want to investigate in hopes of a share price recovery. It is always interesting to track the long-term trends of a share price. However, to better understand Beijing Highlander Digital Technology, many other factors need to be considered. To name a few: One warning sign for Beijing Highlander Digital Technology You should know.

If you want to check out another company that may be financially superior, don't miss this one. free A list of companies that have proven they can grow revenue.

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

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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.