The main point of investing for the long term is to make money. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the Suzhou Victory Precision Manufacture Co., Ltd. (SZSE:002426) share price is up 17% in the last five years, that's less than the market return. Looking at the last year alone, the stock is up 12%.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Because Suzhou Victory Precision Manufacture made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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 5 years Suzhou Victory Precision Manufacture saw its revenue shrink by 33% per year. The falling revenue is arguably somewhat reflected in the lacklustre return of 3% per year over that time. Arguably that's not bad given the soft revenue and loss-making position. Of course, a closer look at the bottom line - and any available analyst forecasts - could reveal an opportunity (if they point to future growth).

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Suzhou Victory Precision Manufacture's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Suzhou Victory Precision Manufacture shareholders have received a total shareholder return of 12% over the last year. That's better than the annualised return of 3% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

We will like Suzhou Victory Precision Manufacture better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.