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Investors in Geo-Jade Petroleum (SHSE:600759) From Five Years Ago Are Still Down 49%, Even After 7.3% Gain This Past Week

Simply Wall St ·  Jan 5, 2023 19:45

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long term Geo-Jade Petroleum Corporation (SHSE:600759) shareholders for doubting their decision to hold, with the stock down 49% over a half decade. But it's up 7.3% in the last week.

While the last five years has been tough for Geo-Jade Petroleum 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 Geo-Jade Petroleum

Geo-Jade Petroleum 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. Shareholders of unprofitable companies usually expect strong 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 half a decade Geo-Jade Petroleum reduced its trailing twelve month revenue by 6.5% for each year. That's not what investors generally want to see. The share price decline at a rate of 8% per year is disappointing. Unfortunately, though, it makes sense given the lack of either profits or revenue growth. Without profits, its hard to see how shareholders win if the revenue keeps falling.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
SHSE:600759 Earnings and Revenue Growth January 6th 2023

If you are thinking of buying or selling Geo-Jade Petroleum stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Geo-Jade Petroleum shareholders are down 16% over twelve months, which isn't far from the market return of -17%. Unfortunately, last year's performance is a deterioration of an already poor long term track record, given the loss of 8% per year over the last five years. Weak performance over the long term usually destroys market confidence in a stock, but bargain hunters may want to take a closer look for signs of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Geo-Jade Petroleum better, we need to consider many other factors. Take risks, for example - Geo-Jade Petroleum has 1 warning sign we think you should be aware of.

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 CN 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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