Chengdu ALD Aviation Manufacturing Corporation (SZSE:300696) shareholders should be happy to see the share price up 16% in the last month. But that is small recompense for the exasperating returns over three years. Regrettably, the share price slid 51% in that period. So the improvement may be a real relief to some. After all, could be that the fall was overdone.

The recent uptick of 11% could be a positive sign of things to come, so let's take a look at historical fundamentals.

While Chengdu ALD Aviation Manufacturing 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. It would be hard to believe in a more profitable future without growing revenues.

In the last three years Chengdu ALD Aviation Manufacturing saw its revenue shrink by 12% per year. That is not a good result. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 15% per year. Of course, it's the future that will determine whether today's price is a good one. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.

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

If you are thinking of buying or selling Chengdu ALD Aviation Manufacturing stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We regret to report that Chengdu ALD Aviation Manufacturing shareholders are down 34% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 11%. 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 7%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Chengdu ALD Aviation Manufacturing better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Chengdu ALD Aviation Manufacturing (including 1 which is a bit concerning) .

Of course Chengdu ALD Aviation Manufacturing may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.