For many investors, the main point of stock picking is to generate higher returns than the overall market. But if you try your hand at stock picking, your risk returning less than the market. We regret to report that long term ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060) shareholders have had that experience, with the share price dropping 47% in three years, versus a market decline of about 2.4%. Shareholders have had an even rougher run lately, with the share price down 11% in the last 90 days. But this could be related to the weak market, which is down 9.3% in the same period.

While the last three years has been tough for ZhongAn Online P & C Insurance shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

View our latest analysis for ZhongAn Online P & C Insurance

ZhongAn Online P & C Insurance wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over three years, ZhongAn Online P & C Insurance grew revenue at 15% per year. That's a pretty good rate of top-line growth. Shareholders have endured a share price decline of 14% per year. This implies the market had higher expectations of ZhongAn Online P & C Insurance. With revenue growing at a solid clip, now might be the time to focus on the possibility that it will have a brighter future.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

ZhongAn Online P & C Insurance is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling ZhongAn Online P & C Insurance stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

It's good to see that ZhongAn Online P & C Insurance has rewarded shareholders with a total shareholder return of 3.8% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 7% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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