It might be of some concern to shareholders to see the Guangxi Oriental Intelligent Manufacturing Technology Co., Ltd. (SZSE:002175) share price down 15% in the last month. On the bright side the returns have been quite good over the last half decade. It has returned a market beating 98% in that time.

Although Guangxi Oriental Intelligent Manufacturing Technology has shed CN¥370m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Given that Guangxi Oriental Intelligent Manufacturing Technology only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. 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.

For the last half decade, Guangxi Oriental Intelligent Manufacturing Technology can boast revenue growth at a rate of 6.7% per year. That's a pretty good long term growth rate. Revenue has been growing at a reasonable clip, so it's debatable whether the share price growth of 15% full reflects the underlying business growth. If revenue growth can maintain for long enough, it's likely profits will flow. Lack of earnings means you have to project further into the future justify the valuation on the basis of future free cash flow.

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

If you are thinking of buying or selling Guangxi Oriental Intelligent Manufacturing Technology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Guangxi Oriental Intelligent Manufacturing Technology shareholders have received a total shareholder return of 55% over one year. That gain is better than the annual TSR over five years, which is 15%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Guangxi Oriental Intelligent Manufacturing Technology (including 1 which doesn't sit too well with us) .

But note: Guangxi Oriental Intelligent Manufacturing 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.