When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. For example, the CETC Acoustic-Optic-Electronic Technology Inc. (SHSE:600877) share price has soared 239% in the last half decade. Most would be very happy with that. Also pleasing for shareholders was the 12% gain in the last three months.

Since it's been a strong week for CETC Acoustic-Optic-Electronic Technology shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for CETC Acoustic-Optic-Electronic Technology

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, CETC Acoustic-Optic-Electronic Technology actually saw its EPS drop 16% per year.

Essentially, it doesn't seem likely that investors are focused on EPS. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.

In contrast revenue growth of 36% per year is probably viewed as evidence that CETC Acoustic-Optic-Electronic Technology is growing, a real positive. In that case, the company may be sacrificing current earnings per share to drive growth.

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

Take a more thorough look at CETC Acoustic-Optic-Electronic Technology's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that CETC Acoustic-Optic-Electronic Technology shareholders have received a total shareholder return of 4.4% over one year. However, that falls short of the 28% TSR per annum it has made for shareholders, each year, over five years. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand CETC Acoustic-Optic-Electronic Technology better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for CETC Acoustic-Optic-Electronic Technology you should know about.

Of course CETC Acoustic-Optic-Electronic Technology may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.