Rising Nonferrous Metals ShareLtd (SHSE:600259) adds CN¥609m to market cap in the past 7 days, though investors from three years ago are still down 34%

As an investor its worth striving to ensure your overall portfolio beats the market average. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Rising Nonferrous Metals Share Co.,Ltd. (SHSE:600259) shareholders, since the share price is down 34% in the last three years, falling well short of the market decline of around 6.9%. On the other hand the share price has bounced 6.4% over the last week. But this could be related to the strong market, with stocks up around 4.2% in the same time.

The recent uptick of 6.4% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Check out our latest analysis for Rising Nonferrous Metals ShareLtd

Because Rising Nonferrous Metals ShareLtd 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years, Rising Nonferrous Metals ShareLtd's revenue dropped 3.4% per year. That's not what investors generally want to see. The stock has disappointed holders over the last three years, falling 10%, annualized. And with no profits, and weak revenue, are you surprised? However, in this kind of situation you can sometimes find opportunity, where sentiment is negative but the company is actually making good progress.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

Rising Nonferrous Metals ShareLtd shareholders gained a total return of 3.7% during the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 2% per year, over five years. So this might be a sign the business has turned its fortunes around. 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 Rising Nonferrous Metals ShareLtd .

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.