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Investing in stocks comes with the risk that the share price will fall. And unfortunately for WT Group Holdings Limited (HKG:8422) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 67% in that time. WT Group Holdings may have better days ahead, of course; we've only looked at a one year period. Contrary to the longer term story, the last month has been good for stockholders, with a share price gain of 9.5%.
View our latest analysis for WT Group Holdings
Given that WT Group Holdings only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.
WT Group Holdings's revenue didn't grow at all in the last year. In fact, it fell 13%. That looks pretty grim, at a glance. In the absence of profits, it's not unreasonable that the share price fell 67%. Fingers crossed this is the low ebb for the stock. 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.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
This free interactive report on WT Group Holdings's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
WT Group Holdings shareholders are down 67% for the year, even worse than the market loss of 3.6%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 1.9% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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.