It is doubtless a positive to see that the Tianjin Troila Information Technology Co.,Ltd. (SHSE:600225) share price has gained some 81% in the last three months. But that doesn't change the fact that the returns over the last year have been less than pleasing. After all, the share price is down 22% in the last year, significantly under-performing the market.

On a more encouraging note the company has added CN¥409m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

Tianjin Troila Information TechnologyLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Tianjin Troila Information TechnologyLtd saw its revenue grow by 5.8%. While that may seem decent it isn't great considering the company is still making a loss. Given this lacklustre revenue growth, the share price drop of 22% seems pretty appropriate. In a hot market it's easy to forget growth is the life-blood of a loss making company. So remember, if you buy a profitless company then you risk being a profitless investor.

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 Tianjin Troila Information TechnologyLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 7.9% in the last year, Tianjin Troila Information TechnologyLtd shareholders lost 22%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 1.0% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Tianjin Troila Information TechnologyLtd better, we need to consider many other factors. Take risks, for example - Tianjin Troila Information TechnologyLtd has 1 warning sign we think 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.