One simple way to benefit from a rising market is to buy an index fund. In contrast individual stocks will provide a wide range of possible returns, and may fall short. One such example is CPM Group Limited (HKG:1932), which saw its share price fall 18% over a year, against a market return of -17%. We wouldn't rush to judgement on CPM Group because we don't have a long term history to look at. Furthermore, it's down 14% in about a quarter. That's not much fun for holders. But this could be related to the weak market, which is down 15% in the same period.

Check out our latest analysis for CPM Group

CPM Group 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.

CPM Group's revenue didn't grow at all in the last year. In fact, it fell 22%. That's not what investors generally want to see. The stock price has languished lately, falling 18% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

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

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

A Different Perspective

Having lost 18% over the year, CPM Group has generated a return within the same ballpark as the broader market. Unfortunately, last year's performance may indicate unresolved challenges, and the share price has continued to drop, down 14% over the last three months. It's not uncommon to see companies without long term track records disappoint shareholders. It's always interesting to track share price performance over the longer term. But to understand CPM Group better, we need to consider many other factors. Take risks, for example - CPM Group has 3 warning signs (and 1 which can't be ignored) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.