Even though Anshan Senyuan Road and Bridge (SZSE:300210) has lost CN¥499m market cap in last 7 days, shareholders are still up 170% over 3 years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For example, the Anshan Senyuan Road and Bridge Co., Ltd (SZSE:300210) share price has soared 170% in the last three years. That sort of return is as solid as granite. In more good news, the share price has risen 22% in thirty days. But this could be related to good market conditions -- stocks in its market are up 25% in the last month.

Although Anshan Senyuan Road and Bridge has shed CN¥499m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

See our latest analysis for Anshan Senyuan Road and Bridge

Anshan Senyuan Road and Bridge 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. 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 3 years Anshan Senyuan Road and Bridge saw its revenue shrink by 10% per year. So the share price gain of 39% per year is quite surprising. It's a good reminder that expectations about the future, not the past history, always impact share prices.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

We're pleased to report that Anshan Senyuan Road and Bridge shareholders have received a total shareholder return of 161% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 19% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Anshan Senyuan Road and Bridge better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Anshan Senyuan Road and Bridge you should know about.

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.