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The nature of investing is that you win some, and you lose some. Anyone who held M&L Holdings Group Limited (HKG:8152) over the last year knows what a loser feels like. The share price has slid 61% in that time. We wouldn't rush to judgement on M&L Holdings Group because we don't have a long term history to look at. Furthermore, it's down 45% in about a quarter. That's not much fun for holders. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
View our latest analysis for M&L Holdings Group
Given that M&L Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
M&L Holdings Group's revenue didn't grow at all in the last year. In fact, it fell 30%. That looks pretty grim, at a glance. In the absence of profits, it's not unreasonable that the share price fell 61%. Having said that, if growth is coming in the future, the stock may have better days ahead. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
If you are thinking of buying or selling M&L Holdings Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
M&L Holdings Group shareholders are down 60% for the year, even worse than the market loss of 4.0%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 45% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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 HK exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.