It's easy to match the overall market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. For example, the ZHEJIANG NARADA POWER SOURCE Co. , Ltd. (SZSE:300068) share price is down 41% in the last year. That falls noticeably short of the market decline of around 6.5%. However, the longer term returns haven't been so bad, with the stock down 6.3% in the last three years. Furthermore, it's down 26% in about a quarter. That's not much fun for holders.

After losing 5.4% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

See our latest analysis for ZHEJIANG NARADA POWER SOURCE

While ZHEJIANG NARADA POWER SOURCE made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

ZHEJIANG NARADA POWER SOURCE grew its revenue by 29% over the last year. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 41%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.

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

We know that ZHEJIANG NARADA POWER SOURCE has improved its bottom line lately, but what does the future have in store? So we recommend checking out this free report showing consensus forecasts

A Different Perspective

While the broader market lost about 6.5% in the twelve months, ZHEJIANG NARADA POWER SOURCE shareholders did even worse, losing 41%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 2%, each year, over five years. 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 ZHEJIANG NARADA POWER SOURCE better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for ZHEJIANG NARADA POWER SOURCE (of which 1 is a bit concerning!) you should know about.

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 Chinese 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.