Even after rising 10% this past week, Anhui Xinke New MaterialsLtd (SHSE:600255) shareholders are still down 14% over the past three years

Anhui Xinke New Materials Co.,Ltd (SHSE:600255) shareholders should be happy to see the share price up 13% in the last month. If you look at the last three years, the stock price is down. But that's not so bad when you consider its market is down 28%.

While the last three years has been tough for Anhui Xinke New MaterialsLtd shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

View our latest analysis for Anhui Xinke New MaterialsLtd

Because Anhui Xinke New MaterialsLtd made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over three years, Anhui Xinke New MaterialsLtd grew revenue at 2.9% per year. Given it's losing money in pursuit of growth, we are not really impressed with that. The share price drop of 5% per year is not too bad. So it seems plausible that the market sentiment has remained optimistic, given the fairly modest revenue growth, and current lack of profits. As the company progresses towards profitability, there may be a buying opportunity.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on Anhui Xinke New MaterialsLtd'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, Anhui Xinke New MaterialsLtd shareholders can take comfort that their trailing twelve month loss of 7.7% wasn't as bad as the market loss of around 17%. Longer term investors wouldn't be so upset, since they would have made 1.8%, each year, over five years. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

But note: Anhui Xinke New MaterialsLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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