The 11% return this week takes Tongyi Carbon Neutral Technology (Xinjiang)'s (SHSE:600506) shareholders three-year gains to 18%

By buying an index fund, investors can approximate the average market return. But if you choose individual stocks with prowess, you can make superior returns. For example, the Tongyi Carbon Neutral Technology (Xinjiang) Co., Ltd (SHSE:600506) share price is up 18% in the last three years, clearly besting the market decline of around 25% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 14%.

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 Tongyi Carbon Neutral Technology (Xinjiang)

Tongyi Carbon Neutral Technology (Xinjiang) 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. 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.

Tongyi Carbon Neutral Technology (Xinjiang)'s revenue trended up 50% each year over three years. That's much better than most loss-making companies. The share price rise of 6% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at Tongyi Carbon Neutral Technology (Xinjiang). If the company is trending towards profitability then it could be very interesting.

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

If you are thinking of buying or selling Tongyi Carbon Neutral Technology (Xinjiang) stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Tongyi Carbon Neutral Technology (Xinjiang) has rewarded shareholders with a total shareholder return of 14% in the last twelve months. That's better than the annualised return of 2% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Even so, be aware that Tongyi Carbon Neutral Technology (Xinjiang) is showing 1 warning sign in our investment analysis , you should know about...

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.