It hasn't been the best quarter for Shandong Chiway Industry Development Co.,Ltd. (SZSE:002374) shareholders, since the share price has fallen 11% in that time. But over three years, the returns would have left most investors smiling In the last three years the share price is up, 53%: better than the market.
Since it's been a strong week for Shandong Chiway Industry DevelopmentLtd shareholders, let's have a look at trend of the longer term fundamentals.
Check out our latest analysis for Shandong Chiway Industry DevelopmentLtd
Given that Shandong Chiway Industry DevelopmentLtd 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 expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 3 years Shandong Chiway Industry DevelopmentLtd saw its revenue shrink by 3.5% per year. The revenue growth might be lacking but the share price has gained 15% each year in that time. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.
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 Shandong Chiway Industry DevelopmentLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
While the broader market lost about 6.6% in the twelve months, Shandong Chiway Industry DevelopmentLtd shareholders did even worse, losing 19%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.2% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Shandong Chiway Industry DevelopmentLtd better, we need to consider many other factors. Take risks, for example - Shandong Chiway Industry DevelopmentLtd has 1 warning sign we think you should be aware of.
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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.