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. At this point some shareholders may be questioning their investment in Kexin Development Co.,Ltd,Shanxi (SHSE:600234), since the last five years saw the share price fall 39%. And some of the more recent buyers are probably worried, too, with the stock falling 31% in the last year. On top of that, the share price is down 17% in the last week.

After losing 17% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Kexin DevelopmentLtdShanxi

While Kexin DevelopmentLtdShanxi made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. 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 half decade, Kexin DevelopmentLtdShanxi saw its revenue increase by 40% per year. That's better than most loss-making companies. Shareholders are no doubt disappointed with the loss of 7%, each year, in that time. You could say that the market has been harsh, given the top line growth. If that's the case, now might be the smart time to take a close look at it.

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

This free interactive report on Kexin DevelopmentLtdShanxi's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Kexin DevelopmentLtdShanxi shareholders are down 31% for the year, but the market itself is up 6.2%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Kexin DevelopmentLtdShanxi better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Kexin DevelopmentLtdShanxi , and understanding them should be part of your investment process.

But note: Kexin DevelopmentLtdShanxi 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 Chinese 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.