Shanghai Metersbonwe Fashion and Accessories (SZSE:002269) swells 28% this week, taking five-year gains to 14%

The main point of investing for the long term is to make money. Furthermore, you'd generally like to see the share price rise faster than the market. Unfortunately for shareholders, while the Shanghai Metersbonwe Fashion and Accessories Co., Ltd. (SZSE:002269) share price is up 14% in the last five years, that's less than the market return. Looking at the last year alone, the stock is up 14%.

The past week has proven to be lucrative for Shanghai Metersbonwe Fashion and Accessories investors, so let's see if fundamentals drove the company's five-year performance.

See our latest analysis for Shanghai Metersbonwe Fashion and Accessories

While Shanghai Metersbonwe Fashion and Accessories made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

Over the last half decade Shanghai Metersbonwe Fashion and Accessories' revenue has actually been trending down at about 35% per year. The stock is only up 3% for each year during the period. That's pretty decent given the top line decline, and lack of profits. We'd keep an eye on changes in the trend - there may be an opportunity if the company returns to growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Shanghai Metersbonwe Fashion and Accessories' financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Shanghai Metersbonwe Fashion and Accessories shareholders have received a total shareholder return of 14% over the last year. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. 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 Shanghai Metersbonwe Fashion and Accessories better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Shanghai Metersbonwe Fashion and Accessories you should be aware of.

Of course Shanghai Metersbonwe Fashion and Accessories 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.