If You Had Bought Wan Cheng Metal Packaging (HKG:8291) Stock A Year Ago, You'd Be Sitting On A 41% Loss, Today
Wan Cheng Metal Packaging Company Limited (HKG:8291) shareholders will doubtless be very grateful to see the share price up 48% in the last month. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 41% in one year, under-performing the market.
Check out our latest analysis for Wan Cheng Metal Packaging
Wan Cheng Metal Packaging isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In just one year Wan Cheng Metal Packaging saw its revenue fall by 49%. That looks pretty grim, at a glance. The stock price has languished lately, falling 41% in a year. What would you expect when revenue is falling, and it doesn't make a profit? We think most holders must believe revenue growth will improve, or else costs will decline.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
A Different Perspective
We doubt Wan Cheng Metal Packaging shareholders are happy with the loss of 41% over twelve months. That falls short of the market, which lost 17%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Putting aside the last twelve months, it's good to see the share price has rebounded by 33%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Wan Cheng Metal Packaging better, we need to consider many other factors. For instance, we've identified 5 warning signs for Wan Cheng Metal Packaging (3 are a bit unpleasant) that you should be aware of.
We will like Wan Cheng Metal Packaging 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 HK exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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