The 5.9% return this week takes China Gold International Resources' (TSE:CGG) shareholders five-year gains to 592%

It hasn't been the best quarter for China Gold International Resources Corp. Ltd. (TSE:CGG) shareholders, since the share price has fallen 24% in that time. But that doesn't change the fact that the returns over the last half decade have been spectacular. To be precise, the stock price is 483% higher than it was five years ago, a wonderful performance by any measure. So it might be that some shareholders are taking profits after good performance. But the real question is whether the business fundamentals can improve over the long term.

Since it's been a strong week for China Gold International Resources shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for China Gold International Resources

Given that China Gold International Resources didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

Over the last half decade China Gold International Resources' revenue has actually been trending down at about 2.6% per year. This is in stark contrast to the strong share price growth of 42%, compound, per year. Obviously, whatever the market is excited about, it's not a track record of revenue growth. At the risk of upsetting holders, this does suggest that hope for a better future is playing a significant role in the share price action.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between China Gold International Resources' total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for China Gold International Resources shareholders, and that cash payout contributed to why its TSR of 592%, over the last 5 years, is better than the share price return.

A Different Perspective

China Gold International Resources provided a TSR of 12% over the last twelve months. Unfortunately this falls short of the market return. If we look back over five years, the returns are even better, coming in at 47% per year for five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. Before spending more time on China Gold International Resources it might be wise to click here to see if insiders have been buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.