This week we saw the TECON BIOLOGY Co.LTD (SZSE:002100) share price climb by 13%. But that doesn't change the fact that the returns over the last five years have been less than pleasing. In fact, the share price is down 28%, which falls well short of the return you could get by buying an index fund.

The recent uptick of 13% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Because TECON BIOLOGYLTD 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

In the last half decade, TECON BIOLOGYLTD saw its revenue increase by 19% per year. That's well above most other pre-profit companies. The share price drop of 5% per year over five years would be considered let down. So you might argue the TECON BIOLOGYLTD should get more credit for its rather impressive revenue growth over the period. If that's the case, now might be the smart time to take a close look at it.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. You can see what analysts are predicting for TECON BIOLOGYLTD in this interactive graph of future profit estimates.

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between TECON BIOLOGYLTD's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for TECON BIOLOGYLTD shareholders, and that cash payout explains why its total shareholder loss of 21%, over the last 5 years, isn't as bad as the share price return.

A Different Perspective

TECON BIOLOGYLTD shareholders gained a total return of 1.6% during the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 4% per year, over five years. So this might be a sign the business has turned its fortunes around. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

But note: TECON BIOLOGYLTD may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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