When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. One great example is Jiangsu Nonghua Intelligent Agriculture Technology Co.ltd (SZSE:000816) which saw its share price drive 147% higher over five years. It's also good to see the share price up 96% over the last quarter.

The past week has proven to be lucrative for Jiangsu Nonghua Intelligent Agriculture Technologyltd investors, so let's see if fundamentals drove the company's five-year performance.

Jiangsu Nonghua Intelligent Agriculture Technologyltd 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 5 years Jiangsu Nonghua Intelligent Agriculture Technologyltd saw its revenue shrink by 5.3% per year. Given that scenario, we wouldn't have expected the share price to rise 20% per year, but that's what it did. It just goes to show tht the market is forward looking, and it's not always easy to predict the future based on past trends. Still, this situation makes us a little wary of the stock.

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

This free interactive report on Jiangsu Nonghua Intelligent Agriculture Technologyltd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Jiangsu Nonghua Intelligent Agriculture Technologyltd's TSR for the year was broadly in line with the market average, at 15%. It has to be noted that the recent return falls short of the 20% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. You could get a better understanding of Jiangsu Nonghua Intelligent Agriculture Technologyltd's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

But note: Jiangsu Nonghua Intelligent Agriculture Technologyltd 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.