Ideally, your overall portfolio should beat the market average. But in any portfolio, there will be mixed results between individual stocks. At this point some shareholders may be questioning their investment in Shanghai Xuerong Biotechnology Co.,Ltd. (SZSE:300511), since the last five years saw the share price fall 43%. The last week also saw the share price slip down another 9.2%.

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

See our latest analysis for Shanghai Xuerong BiotechnologyLtd

Shanghai Xuerong BiotechnologyLtd 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 expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last half decade, Shanghai Xuerong BiotechnologyLtd saw its revenue increase by 8.3% per year. That's a fairly respectable growth rate. Shareholders have seen the share price fall at 7% per year, for five years: a poor performance. Clearly, the expectations from back then have not been satisfied. There is always a big risk of losing money yourself when you buy shares in a company that loses money.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Shanghai Xuerong BiotechnologyLtd's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between Shanghai Xuerong BiotechnologyLtd's total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for Shanghai Xuerong BiotechnologyLtd shareholders, and that cash payout explains why its total shareholder loss of 40%, over the last 5 years, isn't as bad as the share price return.

A Different Perspective

It's good to see that Shanghai Xuerong BiotechnologyLtd has rewarded shareholders with a total shareholder return of 13% in the last twelve months. That certainly beats the loss of about 7% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Shanghai Xuerong BiotechnologyLtd better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Shanghai Xuerong BiotechnologyLtd you should be aware of, and 2 of them are a bit unpleasant.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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.