Guangxi Rural Investment Sugar Industry Group Co., Ltd (SZSE:000911) shareholders should be happy to see the share price up 28% in the last month. The stock is actually down over the last year. But on the bright side, its return of 15%, is better than the market, which is down 0.1506767026.
While the stock has risen 13% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
While Guangxi Rural Investment Sugar Industry Group 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.
Guangxi Rural Investment Sugar Industry Group grew its revenue by 19% over the last year. That's definitely a respectable growth rate. While the share price drop of 15% over twelve months certainly won't delight holders, it's not bad in a weak market. We'd venture the revenue growth helped inspire some faith from holders. So growth investors might like to put this one on the watchlist to see if revenue keeps trending in the right direction.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on Guangxi Rural Investment Sugar Industry Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
Guangxi Rural Investment Sugar Industry Group shareholders are down 15% over twelve months, which isn't far from the market return of -15%. So last year was actually even worse than the last five years, which cost shareholders 1.2% per year. It will probably take a substantial improvement in the fundamental performance for the company to reverse this trend. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Guangxi Rural Investment Sugar Industry Group (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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.