The last three months have been tough on Golden Solar New Energy Technology Holdings Limited (HKG:1121) shareholders, who have seen the share price decline a rather worrying 38%. But that doesn't change the fact that the returns over the last half decade have been spectacular. In that time, the share price has soared some 496% higher! So we don't think the recent decline in the share price means its story is a sad one. Only time will tell if there is still too much optimism currently reflected in the share price. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 54% decline over the last twelve months.
Since it's been a strong week for Golden Solar New Energy Technology Holdings shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for Golden Solar New Energy Technology Holdings
Golden Solar New Energy Technology Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
For the last half decade, Golden Solar New Energy Technology Holdings can boast revenue growth at a rate of 16% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 43%(per year) over the same period. Despite the strong run, top performers like Golden Solar New Energy Technology Holdings have been known to go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
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.
A Different Perspective
Investors in Golden Solar New Energy Technology Holdings had a tough year, with a total loss of 54%, against a market gain of about 2.2%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 43% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. For instance, we've identified 3 warning signs for Golden Solar New Energy Technology Holdings (2 shouldn't be ignored) that you should be aware of.
But note: Golden Solar New Energy Technology Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.