The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For instance, the price of Toyou Feiji Electronics Co., Ltd. (SZSE:300302) stock is up an impressive 107% over the last five years. It's also up 31% in about a month. We note that Toyou Feiji Electronics reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.

Since the stock has added CN¥805m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Toyou Feiji Electronics

Because Toyou Feiji Electronics made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong 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.

In the last 5 years Toyou Feiji Electronics saw its revenue grow at 5.5% per year. Put simply, that growth rate fails to impress. So we wouldn't have expected to see the share price to have lifted 16% for each year during that time, but that's what happened. Shareholders should be pretty happy with that, although interested investors might want to examine the financial data more closely to see if the gains are really justified. Some might suggest that the sentiment around the stock is rather positive.

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

Take a more thorough look at Toyou Feiji Electronics' financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Toyou Feiji Electronics shareholders have received a total shareholder return of 86% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 16% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Toyou Feiji Electronics better, we need to consider many other factors. Even so, be aware that Toyou Feiji Electronics is showing 2 warning signs in our investment analysis , you should know about...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.