Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. For example, the SDIC Intelligence Xiamen Information Co., Ltd. (SZSE:300188) share price is up 12% in the last 1 year, clearly besting the market return of around 4.1% (not including dividends). That's a solid performance by our standards! The longer term returns have not been as good, with the stock price only 3.6% higher than it was three years ago.

Since it's been a strong week for SDIC Intelligence Xiamen Information shareholders, let's have a look at trend of the longer term fundamentals.

Given that SDIC Intelligence Xiamen Information didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, SDIC Intelligence Xiamen Information's revenue grew by 11%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 12%. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

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 SDIC Intelligence Xiamen Information stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that SDIC Intelligence Xiamen Information has rewarded shareholders with a total shareholder return of 12% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 0.2% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that SDIC Intelligence Xiamen Information is showing 1 warning sign in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.