It is doubtless a positive to see that the TUS ENVIRONMENTAL SCIENCE AND TECHNOLOGY DEVELOPMENT Co., LTD. (SZSE:000826) share price has gained some 83% in the last three months. But that is little comfort to those holding over the last half decade, sitting on a big loss. The share price has failed to impress anyone , down a sizable 66% during that time. So we're not so sure if the recent bounce should be celebrated. We'd err towards caution given the long term under-performance.

While the stock has risen 29% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

TUS ENVIRONMENTAL SCIENCE AND TECHNOLOGY DEVELOPMENT 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last five years TUS ENVIRONMENTAL SCIENCE AND TECHNOLOGY DEVELOPMENT saw its revenue shrink by 14% per year. That's definitely a weaker result than most pre-profit companies report. Arguably, the market has responded appropriately to this business performance by sending the share price down 11% (annualized) in the same time period. We don't generally like to own companies that lose money and don't grow revenues. You might be better off spending your money on a leisure activity. You'd want to research this company pretty thoroughly before buying, it looks a bit too risky for us.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

If you are thinking of buying or selling TUS ENVIRONMENTAL SCIENCE AND TECHNOLOGY DEVELOPMENT stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 11% in the last year, TUS ENVIRONMENTAL SCIENCE AND TECHNOLOGY DEVELOPMENT shareholders lost 11%. 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. Unfortunately, longer term shareholders are suffering worse, given the loss of 11% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. 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. For instance, we've identified 2 warning signs for TUS ENVIRONMENTAL SCIENCE AND TECHNOLOGY DEVELOPMENT (1 is a bit concerning) that you should be aware of.

We will like TUS ENVIRONMENTAL SCIENCE AND TECHNOLOGY DEVELOPMENT 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.