Guangdong Create Century Intelligent Equipment Group (SZSE:300083) shareholders are still up 110% over 5 years despite pulling back 5.5% in the past week

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Guangdong Create Century Intelligent Equipment Group Corporation Limited (SZSE:300083) which saw its share price drive 110% higher over five years. On top of that, the share price is up 28% in about a quarter.

Although Guangdong Create Century Intelligent Equipment Group has shed CN¥899m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

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To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the five years of share price growth, Guangdong Create Century Intelligent Equipment Group moved from a loss to profitability. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that Guangdong Create Century Intelligent Equipment Group has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Guangdong Create Century Intelligent Equipment Group will grow revenue in the future.

A Different Perspective

We're pleased to report that Guangdong Create Century Intelligent Equipment Group shareholders have received a total shareholder return of 47% over one year. That's better than the annualised return of 16% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Guangdong Create Century Intelligent Equipment Group better, we need to consider many other factors. Take risks, for example - Guangdong Create Century Intelligent Equipment Group has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

But note: Guangdong Create Century Intelligent Equipment Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.