Even after rising 14% this past week, Poly Union Chemical Holding Group (SZSE:002037) shareholders are still down 29% over the past year

While not a mind-blowing move, it is good to see that the Poly Union Chemical Holding Group Co., Ltd. (SZSE:002037) share price has gained 20% in the last three months. But in truth the last year hasn't been good for the share price. In fact the stock is down 29% in the last year, well below the market return.

While the last year has been tough for Poly Union Chemical Holding Group 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.

See our latest analysis for Poly Union Chemical Holding Group

Poly Union Chemical Holding Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

In the last year Poly Union Chemical Holding Group saw its revenue grow by 6.5%. That's not a very high growth rate considering it doesn't make profits. Given this lacklustre revenue growth, the share price drop of 29% seems pretty appropriate. In a hot market it's easy to forget growth is the life-blood of a loss making company. So remember, if you buy a profitless company then you risk being a profitless investor.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Poly Union Chemical Holding Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We regret to report that Poly Union Chemical Holding Group shareholders are down 29% for the year. Unfortunately, that's worse than the broader market decline of 8.0%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Poly Union Chemical Holding Group better, we need to consider many other factors. Even so, be aware that Poly Union Chemical Holding Group is showing 2 warning signs in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.