Hi-Target Navigation Tech Co.,Ltd (SZSE:300177) shareholders should be happy to see the share price up 12% in the last week. But if you look at the last five years the returns have not been good. After all, the share price is down 45% in that time, significantly under-performing the market.
The recent uptick of 12% could be a positive sign of things to come, so let's take a look at historical fundamentals.
Hi-Target Navigation TechLtd 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 desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over half a decade Hi-Target Navigation TechLtd reduced its trailing twelve month revenue by 0.8% for each year. While far from catastrophic that is not good. The stock hasn't done well for shareholders in the last five years, falling 8%, annualized. But it doesn't surprise given the falling revenue. It might be worth watching for signs of a turnaround - buyers are probably expecting one.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on Hi-Target Navigation TechLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We regret to report that Hi-Target Navigation TechLtd shareholders are down 24% for the year. Unfortunately, that's worse than the broader market decline of 13%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 8% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Hi-Target Navigation TechLtd has 2 warning signs (and 1 which is significant) we think you should know about.
We will like Hi-Target Navigation TechLtd better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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.