Guang Dong Qun Xing Toys co.Ltd (SZSE:002575) rallies 12% this week, taking one-year gains to 69%

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the Guang Dong Qun Xing Toys Joint-Stockco.,Ltd. (SZSE:002575) share price is up 69% in the last 1 year, clearly besting the market return of around 17% (not including dividends). That's a solid performance by our standards! Looking back further, the stock price is 69% higher than it was three years ago.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

See our latest analysis for Guang Dong Qun Xing Toys co.Ltd

Because Guang Dong Qun Xing Toys co.Ltd 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Guang Dong Qun Xing Toys co.Ltd saw its revenue grow by 520%. That's a head and shoulders above most loss-making companies. The solid 69% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Guang Dong Qun Xing Toys co.Ltd. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

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

This free interactive report on Guang Dong Qun Xing Toys co.Ltd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Guang Dong Qun Xing Toys co.Ltd has rewarded shareholders with a total shareholder return of 69% in the last twelve months. That gain is better than the annual TSR over five years, which is 4%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Guang Dong Qun Xing Toys co.Ltd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Guang Dong Qun Xing Toys co.Ltd that you should be aware of before investing here.

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.