Even after rising 10% this past week, Bengang Steel Plates (SZSE:000761) shareholders are still down 7.1% over the past three years

Bengang Steel Plates Co., Ltd. (SZSE:000761) shareholders should be happy to see the share price up 12% in the last month. If you look at the last three years, the stock price is down. But on the bright side, its return of -19%, is better than the market, which is down 8.4%.

While the stock has risen 10% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

View our latest analysis for Bengang Steel Plates

Given that Bengang Steel Plates 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years Bengang Steel Plates saw its revenue shrink by 13% per year. That's not what investors generally want to see. The stock has disappointed holders over the last three years, falling 6%, annualized. That makes sense given the lack of either profits or revenue growth. 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).

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

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Bengang Steel Plates' total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Bengang Steel Plates shareholders, and that cash payout explains why its total shareholder loss of 7.1%, over the last 3 years, isn't as bad as the share price return.

A Different Perspective

Bengang Steel Plates shareholders are up 2.5% for the year. But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 3% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand Bengang Steel Plates better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Bengang Steel Plates you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.