Tianyu Digital Technology (Dalian) Group Co., Ltd. (SZSE:002354) shareholders have seen the share price descend 11% over the month. But that doesn't change the fact that the returns over the last three years have been pleasing. In the last three years the share price is up, 35%: better than the market.

The past week has proven to be lucrative for Tianyu Digital Technology (Dalian) Group investors, so let's see if fundamentals drove the company's three-year performance.

Tianyu Digital Technology (Dalian) Group 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Tianyu Digital Technology (Dalian) Group's revenue trended up 10% each year over three years. That's pretty nice growth. The share price gain of 11% per year shows that the market is paying attention to this growth. Of course, valuation is quite sensitive to the rate of growth. Keep in mind that the strength of the balance sheet impacts the options open to the company.

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

This free interactive report on Tianyu Digital Technology (Dalian) Group'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 11% in the twelve months, Tianyu Digital Technology (Dalian) Group shareholders did even worse, losing 28%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 0.7% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Tianyu Digital Technology (Dalian) Group better, we need to consider many other factors. For instance, we've identified 1 warning sign for Tianyu Digital Technology (Dalian) Group that you should be aware of.

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.