Loss-making BYBON Group (SZSE:300736) has seen earnings and shareholder returns follow the same downward trajectory over past -17%

BYBON Group Company Limited (SZSE:300736) shareholders will doubtless be very grateful to see the share price up 52% in the last quarter. But in truth the last year hasn't been good for the share price. After all, the share price is down 17% in the last year, significantly under-performing the market.

On a more encouraging note the company has added CN¥156m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

See our latest analysis for BYBON Group

Because BYBON Group 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

BYBON Group's revenue didn't grow at all in the last year. In fact, it fell 14%. That looks pretty grim, at a glance. The stock price has languished lately, falling 17% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

Investors in BYBON Group had a tough year, with a total loss of 17%, against a market gain of about 4.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 1.9%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand BYBON Group better, we need to consider many other factors. Take risks, for example - BYBON Group has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.