Investors in Aurora OptoelectronicsLtd (SHSE:600666) from a year ago are still down 23%, even after 11% gain this past week

While it may not be enough for some shareholders, we think it is good to see the Aurora Optoelectronics Co.,Ltd. (SHSE:600666) share price up 17% in a single quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact the stock is down 23% in the last year, well below the market return.

Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.

See our latest analysis for Aurora OptoelectronicsLtd

Given that Aurora OptoelectronicsLtd 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. 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 year Aurora OptoelectronicsLtd saw its revenue grow by 17%. We think that is pretty nice growth. Meanwhile, the share price is down 23% over twelve months, which is disappointing given the progress made. You might even wonder if the share price was previously over-hyped. But if revenue keeps growing, then at a certain point the share price would likely follow.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Take a more thorough look at Aurora OptoelectronicsLtd's financial health with this free report on its balance sheet.

A Different Perspective

We regret to report that Aurora OptoelectronicsLtd shareholders are down 23% for the year. Unfortunately, that's worse than the broader market decline of 6.0%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Aurora OptoelectronicsLtd better, we need to consider many other factors. Even so, be aware that Aurora OptoelectronicsLtd is showing 1 warning sign in our investment analysis , you should know about...

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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.