Investing in stocks comes with the risk that the share price will fall. Unfortunately, shareholders of Yixin Group Limited (HKG:2858) have suffered share price declines over the last year. The share price is down a hefty 69% in that time. Notably, shareholders had a tough run over the longer term, too, with a drop of 57% in the last three years. The falls have accelerated recently, with the share price down 35% in the last three months. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.

While the stock has risen 9.3% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

Check out our latest analysis for Yixin Group

Given that Yixin Group only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year Yixin Group saw its revenue grow by 112%. That's well above most other pre-profit companies. Meanwhile, the share price slid 69%. This could mean hype has come out of the stock because the bottom line is concerning investors. We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.

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

We know that Yixin Group has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Yixin Group will earn in the future (free profit forecasts).

A Different Perspective

The last twelve months weren't great for Yixin Group shares, which performed worse than the market, costing holders 69%. The market shed around 21%, no doubt weighing on the stock price. Shareholders have lost 16% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand Yixin Group better, we need to consider many other factors. For example, we've discovered 4 warning signs for Yixin Group (1 can't be ignored!) that you should be aware of before investing here.

But note: Yixin Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.