Guangdong Orient Zirconic Ind Sci & TechLtd (SZSE:002167) three-year losses have grown faster than shareholder returns have fallen, but the stock hikes 14% this past week

This week we saw the Guangdong Orient Zirconic Ind Sci & Tech Co.,Ltd (SZSE:002167) share price climb by 14%. But that doesn't help the fact that the three year return is less impressive. Truth be told the share price declined 31% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

While the last three years has been tough for Guangdong Orient Zirconic Ind Sci & TechLtd 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.

Check out our latest analysis for Guangdong Orient Zirconic Ind Sci & TechLtd

Guangdong Orient Zirconic Ind Sci & TechLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years, Guangdong Orient Zirconic Ind Sci & TechLtd saw its revenue grow by 7.5% per year, compound. That's not a very high growth rate considering it doesn't make profits. The stock dropped 9% during that time. Shareholders will probably be hoping growth picks up soon. But ultimately the key will be whether the company can become profitability.

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

If you are thinking of buying or selling Guangdong Orient Zirconic Ind Sci & TechLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We regret to report that Guangdong Orient Zirconic Ind Sci & TechLtd shareholders are down 13% for the year. Unfortunately, that's worse than the broader market decline of 6.0%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 2% 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. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

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.