While Integrated Electronic Systems Lab Co., Ltd. (SZSE:002339) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 18% in the last quarter. On the bright side the share price is up over the last half decade. In that time, it is up 28%, which isn't bad, but is below the market return of 28%.
Since the long term performance has been good but there's been a recent pullback of 13%, let's check if the fundamentals match the share price.
Check out our latest analysis for Integrated Electronic Systems Lab
Given that Integrated Electronic Systems Lab 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
For the last half decade, Integrated Electronic Systems Lab can boast revenue growth at a rate of 3.9% per year. Put simply, that growth rate fails to impress. The modest growth is probably broadly reflected in the share price, which is up 5%, per year over 5 years. We'd be looking for the underlying business to grow revenue a bit faster.
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 Integrated Electronic Systems Lab's balance sheet strength is a great place to start, if you want to investigate the stock further.
What About The Total Shareholder Return (TSR)?
Investors should note that there's a difference between Integrated Electronic Systems Lab's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that Integrated Electronic Systems Lab's TSR of 30% over the last 5 years is better than the share price return.
A Different Perspective
While it's never nice to take a loss, Integrated Electronic Systems Lab shareholders can take comfort that their trailing twelve month loss of 17% wasn't as bad as the market loss of around 21%. Longer term investors wouldn't be so upset, since they would have made 5%, each year, over five years. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Integrated Electronic Systems Lab , and understanding them should be part of your investment process.
But note: Integrated Electronic Systems Lab may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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.