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China International Holdings Limited (SGX:BEH) has rebounded strongly over the last week, with the share price soaring 38%. But if you look at the last five years the returns have not been good. After all, the share price is down 53% in that time, significantly under-performing the market.
View our latest analysis for China International Holdings
Because China International Holdings is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good 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 China International Holdings reduced its trailing twelve month revenue by 15% for each year. That puts it in an unattractive cohort, to put it mildly. It seems appropriate, then, that the share price slid about 14% annually during that time. It's fair to say most investors don't like to invest in loss making companies with falling revenue. This looks like a really risky stock to buy, at a glance.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
What about the Total Shareholder Return (TSR)?
We've already covered China International Holdings's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. China International Holdings's TSR of 2.3% for the 5 years exceeded its share price return, because it has paid dividends.
A Different Perspective
China International Holdings shareholders are down 5.0% for the year, but the market itself is up 9.2%. 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 0.5%, 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. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.