Yahoo Finance Those Who Purchased ZhongAn Online P & C Insurance (HKG:6060) Shares A Year Ago Have A 62% Loss To Show For It
The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 62%. ZhongAn Online P & C Insurance may have better days ahead, of course; we’ve only looked at a one year period. On top of that, the share price is down 13% in the last week.
Check out our latest analysis for ZhongAn Online P & C Insurance
ZhongAn Online P & C Insurance isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last twelve months, ZhongAn Online P & C Insurance increased its revenue by 64%. That’s well above most other pre-profit companies. In contrast the share price is down 62% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
ZhongAn Online P & C Insurance shareholders are down 62% for the year, even worse than the market loss of 8.5%. There’s no doubt that’s a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 5.4%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. You could get a better understanding of ZhongAn Online P & C Insurance’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
We will like ZhongAn Online P & C Insurance 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 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.
