HiVi Acoustics Technology (SZSE:002888) delivers shareholders 7.2% CAGR over 3 years, surging 17% in the last week alone

One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, the HiVi Acoustics Technology Co., Ltd (SZSE:002888) share price is up 22% in the last three years, clearly besting the market decline of around 30% (not including dividends).

Since it's been a strong week for HiVi Acoustics Technology shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for HiVi Acoustics Technology

Given that HiVi Acoustics Technology 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. Shareholders of unprofitable companies usually desire strong 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.

HiVi Acoustics Technology actually saw its revenue drop by 12% per year over three years. Despite the lack of revenue growth, the stock has returned 7%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on HiVi Acoustics Technology's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While it's never nice to take a loss, HiVi Acoustics Technology shareholders can take comfort that , including dividends,their trailing twelve month loss of 4.7% wasn't as bad as the market loss of around 17%. Given the total loss of 0.9% per year over five years, it seems returns have deteriorated in the last twelve months. Whilst Baron Rothschild does tell the investor "buy when there's blood in the streets, even if the blood is your own", buyers would need to examine the data carefully to be comfortable that the business itself is sound. It's always interesting to track share price performance over the longer term. But to understand HiVi Acoustics Technology better, we need to consider many other factors. For instance, we've identified 2 warning signs for HiVi Acoustics 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com