Stock Analysis

Mianyang Fulin PrecisionLtd (SZSE:300432) shareholder returns have been solid, earning 199% in 5 years

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SZSE:300432

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term Mianyang Fulin Precision Co.,Ltd. (SZSE:300432) shareholders would be well aware of this, since the stock is up 193% in five years. Better yet, the share price has risen 8.2% in the last week. But this might be partly because the broader market had a good week last week, gaining 5.4%.

Since it's been a strong week for Mianyang Fulin PrecisionLtd shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for Mianyang Fulin PrecisionLtd

Given that Mianyang Fulin PrecisionLtd 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. 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.

For the last half decade, Mianyang Fulin PrecisionLtd can boast revenue growth at a rate of 36% per year. That's well above most pre-profit companies. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 24% per year, compound, during the period. So it seems likely that buyers have paid attention to the strong revenue growth. To our minds that makes Mianyang Fulin PrecisionLtd worth investigating - it may have its best days ahead.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

SZSE:300432 Earnings and Revenue Growth September 26th 2024

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Mianyang Fulin PrecisionLtd's 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. Its history of dividend payouts mean that Mianyang Fulin PrecisionLtd's TSR of 199% over the last 5 years is better than the share price return.

A Different Perspective

While the broader market lost about 14% in the twelve months, Mianyang Fulin PrecisionLtd shareholders did even worse, losing 31%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 24% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

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 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.