By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, Guang Dong Qun Xing Toys Joint-Stockco.,Ltd. (SZSE:002575) shareholders have seen the share price rise 32% over three years, well in excess of the market decline (20%, not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 13%.

The past week has proven to be lucrative for Guang Dong Qun Xing Toys co.Ltd investors, so let's see if fundamentals drove the company's three-year performance.

Guang Dong Qun Xing Toys co.Ltd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Guang Dong Qun Xing Toys co.Ltd saw its revenue grow at 31% per year. That's well above most pre-profit companies. The share price rise of 10% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at Guang Dong Qun Xing Toys co.Ltd. If the company is trending towards profitability then it could be very interesting.

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 Guang Dong Qun Xing Toys co.Ltd's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Guang Dong Qun Xing Toys co.Ltd shareholders have received a total shareholder return of 13% over one year. There's no doubt those recent returns are much better than the TSR loss of 1.2% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: Guang Dong Qun Xing Toys co.Ltd 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.