The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors in National Silicon Industry Group Co., Ltd. (SHSE:688126) have tasted that bitter downside in the last year, as the share price dropped 29%. That's disappointing when you consider the market declined 8.6%. National Silicon Industry Group hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. And the share price decline continued over the last week, dropping some 5.4%.

If the past week is anything to go by, investor sentiment for National Silicon Industry Group isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for National Silicon Industry Group

We don't think that National Silicon Industry Group's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year National Silicon Industry Group saw its revenue grow by 41%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 29%. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We know that National Silicon Industry Group has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling National Silicon Industry Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

National Silicon Industry Group shareholders are down 29% for the year, even worse than the market loss of 8.6%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's great to see a nice little 1.0% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for National Silicon Industry Group that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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