Explore China International Development's Fair Values from the Community and select yours

Some China International Development Corporation Limited (HKG:264) shareholders are probably rather concerned to see the share price fall 36% over the last three months. But at least the stock is up over the last three years. In that time, it is up 53%, which isn't bad, but not amazing either.

Since the long term performance has been good but there's been a recent pullback of 21%, let's check if the fundamentals match the share price.

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China International Development 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

China International Development actually saw its revenue drop by 28% per year over three years. Despite the lack of revenue growth, the stock has returned 15%, compound, over three years. Unless the company is going to make profits soon, we would be pretty cautious about it.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of China International Development's earnings, revenue and cash flow.

A Different Perspective

China International Development shareholders are down 4.8% for the year, but the market itself is up 48%. 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 2% 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. It's always interesting to track share price performance over the longer term. But to understand China International Development better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with China International Development (including 2 which don't sit too well with us) .

We will like China International Development better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) 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 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.