Suzhou MedicalSystem Technology (SHSE:603990) adds CN¥976m to market cap in the past 7 days, though investors from five years ago are still down 33%

Suzhou MedicalSystem Technology Co., Ltd. (SHSE:603990) shareholders are doubtless heartened to see the share price bounce 33% in just one week. But if you look at the last five years the returns have not been good. You would have done a lot better buying an index fund, since the stock has dropped 33% in that half decade.

On a more encouraging note the company has added CN¥976m to its market cap in just the last 7 days, so let's see if we can determine what's driven the five-year loss for shareholders.

Check out our latest analysis for Suzhou MedicalSystem Technology

Given that Suzhou MedicalSystem 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. When a company doesn't make profits, we'd generally hope to see good 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 half decade, Suzhou MedicalSystem Technology saw its revenue increase by 16% per year. That's better than most loss-making companies. Shareholders are no doubt disappointed with the loss of 6%, each year, in that time. You could say that the market has been harsh, given the top line growth. So now is probably an apt time to look closer at the stock, if you think it has potential.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Suzhou MedicalSystem Technology's TSR for the year was broadly in line with the market average, at 8.6%. To take a positive view, the gain is pleasing, and it sure beats annualized TSR loss of 6%, which was endured over half a decade. While 'turnarounds seldom turn' there are green shoots for Suzhou MedicalSystem Technology. 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. Case in point: We've spotted 2 warning signs for Suzhou MedicalSystem Technology you should be aware of, and 1 of them is potentially serious.

We will like Suzhou MedicalSystem Technology better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.