TianYu Bio-Technology (SHSE:603717 shareholders incur further losses as stock declines 19% this week, taking three-year losses to 45%

TianYu Bio-Technology Co., Ltd. (SHSE:603717) shareholders will doubtless be very grateful to see the share price up 52% in the last quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 45% in the last three years, falling well short of the market return.

With the stock having lost 19% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

See our latest analysis for TianYu Bio-Technology

TianYu Bio-Technology 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years, TianYu Bio-Technology saw its revenue grow by 3.6% per year, compound. That's not a very high growth rate considering it doesn't make profits. Indeed, the stock dropped 13% over the last three years. If revenue growth accelerates, we might see the share price bounce. But ultimately the key will be whether the company can become profitability.

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

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

TianYu Bio-Technology shareholders gained a total return of 8.5% during the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 2% endured over half a decade. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand TianYu Bio-Technology better, we need to consider many other factors. For instance, we've identified 1 warning sign for TianYu Bio-Technology that you should be aware of.

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.