Mulsanne Group Holding Limited (HKG:1817) shareholders should be happy to see the share price up 14% in the last week. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 39% in a year, falling short of the returns you could get by investing in an index fund.

While the last year has been tough for Mulsanne Group Holding 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.

Check out our latest analysis for Mulsanne Group Holding

Because Mulsanne Group Holding made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good 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.

In just one year Mulsanne Group Holding saw its revenue fall by 5.8%. That's not what investors generally want to see. The stock price has languished lately, falling 39% in a year. What would you expect when revenue is falling, and it doesn't make a profit? We think most holders must believe revenue growth will improve, or else costs will decline.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Mulsanne Group Holding stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

The last twelve months weren't great for Mulsanne Group Holding shares, which performed worse than the market, costing holders 39%. Meanwhile, the broader market slid about 19%, likely weighing on the stock. The three-year loss of 4% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. It's always interesting to track share price performance over the longer term. But to understand Mulsanne Group Holding better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Mulsanne Group Holding you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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