Dong Yi Ri Sheng Home Decoration GroupLtd (SZSE:002713) shareholders are up 16% this past week, but still in the red over the last five years

Dong Yi Ri Sheng Home Decoration Group Co.,Ltd. (SZSE:002713) shareholders will doubtless be very grateful to see the share price up 60% in the last quarter. But if you look at the last five years the returns have not been good. After all, the share price is down 32% in that time, significantly under-performing the market.

The recent uptick of 16% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for Dong Yi Ri Sheng Home Decoration GroupLtd

Dong Yi Ri Sheng Home Decoration GroupLtd 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last five years Dong Yi Ri Sheng Home Decoration GroupLtd saw its revenue shrink by 7.8% per year. While far from catastrophic that is not good. The stock hasn't done well for shareholders in the last five years, falling 6%, annualized. But it doesn't surprise given the falling revenue. It might be worth watching for signs of a turnaround - buyers are probably expecting one.

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

Take a more thorough look at Dong Yi Ri Sheng Home Decoration GroupLtd's financial health with this free report on its balance sheet.

A Different Perspective

Dong Yi Ri Sheng Home Decoration GroupLtd shareholders are down 25% for the year, but the market itself is up 7.9%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 6% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. For instance, we've identified 3 warning signs for Dong Yi Ri Sheng Home Decoration GroupLtd that you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.