Changsha DIALINE New Material Sci.&Tech (SZSE:300700) delivers shareholders notable 12% CAGR over 5 years, surging 11% in the last week alone

When we invest, we're generally looking for stocks that outperform the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, the Changsha DIALINE New Material Sci.&Tech. Co., Ltd. (SZSE:300700) share price is up 74% in the last 5 years, clearly besting the market return of around 9.4% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 18%, including dividends.

Since it's been a strong week for Changsha DIALINE New Material Sci.&Tech shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Changsha DIALINE New Material Sci.&Tech

Given that Changsha DIALINE New Material Sci.&Tech 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

For the last half decade, Changsha DIALINE New Material Sci.&Tech can boast revenue growth at a rate of 27% per year. That's well above most pre-profit companies. It's good to see that the stock has 12%, but not entirely surprising given revenue shows strong growth. If you think there could be more growth to come, now might be the time to take a close look at Changsha DIALINE New Material Sci.&Tech. Of course, you'll have to research the business more fully to figure out if this is an attractive opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Changsha DIALINE New Material Sci.&Tech provided a TSR of 18% over the last twelve months. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 12% per year over five year. It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand Changsha DIALINE New Material Sci.&Tech better, we need to consider many other factors. Even so, be aware that Changsha DIALINE New Material Sci.&Tech is showing 1 warning sign in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.