JC Finance & Tax Interconnect Holdings (SZSE:002530) shareholder returns have been impressive, earning 101% in 1 year

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the JC Finance & Tax Interconnect Holdings Ltd. (SZSE:002530) share price had more than doubled in just one year - up 101%. Also pleasing for shareholders was the 53% gain in the last three months. However, the longer term returns haven't been so impressive, with the stock up just 2.2% in the last three years.

Since it's been a strong week for JC Finance & Tax Interconnect Holdings shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for JC Finance & Tax Interconnect Holdings

JC Finance & Tax Interconnect Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

JC Finance & Tax Interconnect Holdings grew its revenue by 5.9% last year. That's not a very high growth rate considering it doesn't make profits. So we wouldn't have expected the share price to rise by 101%. The business will need a lot more growth to justify that increase. We're not so sure that revenue growth is driving the market optimism about the stock.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling JC Finance & Tax Interconnect Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that JC Finance & Tax Interconnect Holdings shareholders have received a total shareholder return of 101% over the last year. Notably the five-year annualised TSR loss of 4% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - JC Finance & Tax Interconnect Holdings has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.