CGN Nuclear Technology Development (SZSE:000881 investor three-year losses grow to 20% as the stock sheds CN¥378m this past week

While not a mind-blowing move, it is good to see that the CGN Nuclear Technology Development Co., Ltd. (SZSE:000881) share price has gained 24% in the last three months. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 21% in the last three years, significantly under-performing the market.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

View our latest analysis for CGN Nuclear Technology Development

CGN Nuclear Technology Development 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

Over the last three years, CGN Nuclear Technology Development's revenue dropped 13% per year. That is not a good result. 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. Of course, sentiment could become too negative, and the company may actually be making progress to profitability.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at CGN Nuclear Technology Development's financial health with this free report on its balance sheet.

A Different Perspective

CGN Nuclear Technology Development shareholders gained a total return of 8.1% during the year. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 2% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. 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. For example, we've discovered 1 warning sign for CGN Nuclear Technology Development that you should be aware of before investing here.

But note: CGN Nuclear Technology Development 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.