Anyuan Coal Industry Group's (SHSE:600397) growing losses don't faze investors as the stock rallies 15% this past week

If you want to compound wealth in the stock market, you can do so by buying an index fund. But in our experience, buying the right stocks can give your wealth a significant boost. For example, the Anyuan Coal Industry Group Co., Ltd. (SHSE:600397) share price is 14% higher than it was five years ago, which is more than the market average. The 3.9% share price rise over the last year is decent, but not great.

The past week has proven to be lucrative for Anyuan Coal Industry Group investors, so let's see if fundamentals drove the company's five-year performance.

View our latest analysis for Anyuan Coal Industry Group

Given that Anyuan Coal Industry Group 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. When a company doesn't make profits, we'd generally hope to see good 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.

For the last half decade, Anyuan Coal Industry Group can boast revenue growth at a rate of 1.5% per year. Put simply, that growth rate fails to impress. While it's hard to say just how much value the company added over five years, the annualised share price gain of 3% seems about right. We'd be looking for the underlying business to grow revenue a bit faster.

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 Anyuan Coal Industry Group's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Anyuan Coal Industry Group shareholders gained a total return of 3.9% during the year. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 3% per year over five year. This suggests the company might be improving over time. 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. To that end, you should be aware of the 1 warning sign we've spotted with Anyuan Coal Industry Group .

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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.