AMSKY Technology (SZSE:300521) jumps 30% this week, taking five-year gains to 125%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, the AMSKY Technology Co., Ltd (SZSE:300521) share price has soared 124% in the last half decade. Most would be very happy with that. Shareholders are also celebrating an even better 154% rise, over the last three months.

Since it's been a strong week for AMSKY Technology shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for AMSKY Technology

Given that AMSKY Technology 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. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years AMSKY Technology saw its revenue grow at 0.9% per year. That's not a very high growth rate considering the bottom line. In comparison, the share price rise of 18% per year over the last half a decade is pretty impressive. Shareholders should be pretty happy with that, although interested investors might want to examine the financial data more closely to see if the gains are really justified. It may be that the market is pretty optimistic about AMSKY Technology.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on AMSKY Technology's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that AMSKY Technology shareholders have received a total shareholder return of 80% over the last year. That's better than the annualised return of 18% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand AMSKY Technology better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with AMSKY Technology (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

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.