While shareholders of Flower KingEco-Engineering (SHSE:603007) are in the black over 3 years, those who bought a week ago aren't so fortunate

The last three months have been tough on Flower KingEco-Engineering Inc. (SHSE:603007) shareholders, who have seen the share price decline a rather worrying 33%. In contrast, the return over three years has been impressive. In three years the stock price has launched 217% higher: a great result. After a run like that some may not be surprised to see prices moderate. If the business can perform well for years to come, then the recent drop could be an opportunity.

Since the long term performance has been good but there's been a recent pullback of 10%, let's check if the fundamentals match the share price.

See our latest analysis for Flower KingEco-Engineering

Because Flower KingEco-Engineering made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

Flower KingEco-Engineering actually saw its revenue drop by 17% per year over three years. So the share price gain of 47% per year is quite surprising. It's a good reminder that expectations about the future, not the past history, always impact share prices.

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

If you are thinking of buying or selling Flower KingEco-Engineering stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Flower KingEco-Engineering shareholders have received a total shareholder return of 85% over one year. That's better than the annualised return of 11% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. To that end, you should be aware of the 4 warning signs we've spotted with Flower KingEco-Engineering .

Of course Flower KingEco-Engineering may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.