It is a pleasure to report that the Tianyang New Materials (Shanghai) Technology Co., Ltd. (SHSE:603330) is up 72% in the last quarter. But that doesn't help the fact that the three year return is less impressive. In fact, the share price is down 38% in the last three years, falling well short of the market return.

On a more encouraging note the company has added CN¥436m to its market cap in just the last 7 days, so let's see if we can determine what's driven the three-year loss for shareholders.

Tianyang New Materials (Shanghai) Technology isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years, Tianyang New Materials (Shanghai) Technology saw its revenue grow by 6.7% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. Indeed, the stock dropped 11% over the last three years. If revenue growth accelerates, we might see the share price bounce. But ultimately the key will be whether the company can become profitability.

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

Take a more thorough look at Tianyang New Materials (Shanghai) Technology's financial health with this free report on its balance sheet.

A Different Perspective

Tianyang New Materials (Shanghai) Technology shareholders gained a total return of 7.1% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 6% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. It's always interesting to track share price performance over the longer term. But to understand Tianyang New Materials (Shanghai) Technology better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Tianyang New Materials (Shanghai) Technology .

But note: Tianyang New Materials (Shanghai) Technology 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.

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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.