The five-year returns have been fantastic for Anshan Senyuan Road and Bridge (SZSE:300210) shareholders despite underlying losses increasing

We think all investors should try to buy and hold high quality multi-year winners. While the best companies are hard to find, but they can generate massive returns over long periods. To wit, the Anshan Senyuan Road and Bridge Co., Ltd (SZSE:300210) share price has soared 303% over five years. If that doesn't get you thinking about long term investing, we don't know what will. And in the last week the share price has popped 19%.

The past week has proven to be lucrative for Anshan Senyuan Road and Bridge investors, so let's see if fundamentals drove the company's five-year performance.

Check out 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years Anshan Senyuan Road and Bridge saw its revenue shrink by 14% per year. So it's pretty surprising to see that the share price is up 32% per year. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. At the risk of upsetting holders, this does suggest that hope for a better future is playing a significant role in the share price action.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized 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. This free interactive report on Anshan Senyuan Road and Bridge's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Anshan Senyuan Road and Bridge shareholders are down 14% for the year, but the market itself is up 17%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 32% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Anshan Senyuan Road and Bridge (of which 1 is potentially serious!) you should know about.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

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.