Regal Hotels International Holdings (HKG:78 shareholders incur further losses as stock declines 12% this week, taking five-year losses to 41%

For many, the main point of investing is to generate higher returns than the overall market. But the main game is to find enough winners to more than offset the losers So we wouldn't blame long term Regal Hotels International Holdings Limited (HKG:78) shareholders for doubting their decision to hold, with the stock down 42% over a half decade. And it's not just long term holders hurting, because the stock is down 25% in the last year. Furthermore, it's down 22% in about a quarter. That's not much fun for holders.

If the past week is anything to go by, investor sentiment for Regal Hotels International Holdings isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

See our latest analysis for Regal Hotels International Holdings

Regal Hotels International 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over half a decade Regal Hotels International Holdings reduced its trailing twelve month revenue by 3.4% for each year. While far from catastrophic that is not good. The share price decline at a rate of 7% per year is disappointing. Unfortunately, though, it makes sense given the lack of either profits or revenue growth. Without profits, its hard to see how shareholders win if the revenue keeps falling.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling Regal Hotels International Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Investors in Regal Hotels International Holdings had a tough year, with a total loss of 25%, against a market gain of about 33%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. Even so, be aware that Regal Hotels International Holdings is showing 1 warning sign in our investment analysis , you should know about...

Of course Regal Hotels International Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong 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.