It might be of some concern to shareholders to see the Baoding Tianwei Baobian Electric Co.,Ltd. (SHSE:600550) share price down 18% in the last month. But in stark contrast, the returns over the last half decade have impressed. It's fair to say most would be happy with 209% the gain in that time. To some, the recent pullback wouldn't be surprising after such a fast rise. The more important question is whether the stock is too cheap or too expensive today.

The past week has proven to be lucrative for Baoding Tianwei Baobian ElectricLtd investors, so let's see if fundamentals drove the company's five-year performance.

Because Baoding Tianwei Baobian ElectricLtd 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years Baoding Tianwei Baobian ElectricLtd saw its revenue grow at 0.8% per year. That's not a very high growth rate considering the bottom line. In comparison, the share price rise of 25% per year over the last half a decade is pretty impressive. Shareholders should be pretty happy with that, although interested investors might want to examine the financial data more closely to see if the gains are really justified. It may be that the market is pretty optimistic about Baoding Tianwei Baobian ElectricLtd.

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 Baoding Tianwei Baobian ElectricLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Baoding Tianwei Baobian ElectricLtd has rewarded shareholders with a total shareholder return of 93% in the last twelve months. That gain is better than the annual TSR over five years, which is 25%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Baoding Tianwei Baobian ElectricLtd you should be aware of.

Of course Baoding Tianwei Baobian ElectricLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.