Yahoo Finance Shareholders in Aoxin Q & M Dental Group (Catalist:1D4) have lost 38%, as stock drops 11% this past week
The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. For example, the Aoxin Q & M Dental Group Limited (Catalist:1D4) share price is down 38% in the last year. That contrasts poorly with the market decline of 3.6%. However, the longer term returns haven't been so bad, with the stock down 24% in the last three years.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
Check out our latest analysis for Aoxin Q & M Dental Group
Given that Aoxin Q & M Dental 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. Shareholders of unprofitable companies usually expect strong 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.
Aoxin Q & M Dental Group's revenue didn't grow at all in the last year. In fact, it fell 14%. That's not what investors generally want to see. Shareholders have seen the share price drop 38% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at Aoxin Q & M Dental Group's financial health with this free report on its balance sheet.
A Different Perspective
Aoxin Q & M Dental Group shareholders are down 38% for the year, but the market itself is up 3.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with Aoxin Q & M Dental Group (including 2 which are significant) .
We will like Aoxin Q & M Dental Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG 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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