One simple way to benefit from the stock market is to buy an index fund. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, Transportation Telecommunication & Information Development Inc.Ltd.Zhejiang (SZSE:300469) shareholders have seen the share price rise 45% over three years, well in excess of the market decline (31%, not including dividends).

The past week has proven to be lucrative for Transportation Telecommunication & Information DevelopmentLtd.Zhejiang investors, so let's see if fundamentals drove the company's three-year performance.

Transportation Telecommunication & Information DevelopmentLtd.Zhejiang wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Transportation Telecommunication & Information DevelopmentLtd.Zhejiang actually saw its revenue drop by 32% per year over three years. Despite the lack of revenue growth, the stock has returned 13%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

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 Transportation Telecommunication & Information DevelopmentLtd.Zhejiang stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We regret to report that Transportation Telecommunication & Information DevelopmentLtd.Zhejiang shareholders are down 22% for the year. Unfortunately, that's worse than the broader market decline of 17%. 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. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Transportation Telecommunication & Information DevelopmentLtd.Zhejiang better, we need to consider many other factors. Even so, be aware that Transportation Telecommunication & Information DevelopmentLtd.Zhejiang is showing 2 warning signs in our investment analysis , you should know about...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com