Yunnan Lincang Xinyuan Germanium IndustryLTD (SZSE:002428) shareholder returns have been strong, earning 136% in 5 years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on a lighter note, a good company can see its share price rise well over 100%. Long term Yunnan Lincang Xinyuan Germanium Industry Co.,LTD (SZSE:002428) shareholders would be well aware of this, since the stock is up 136% in five years. In more good news, the share price has risen 18% in thirty days.

The past week has proven to be lucrative for Yunnan Lincang Xinyuan Germanium IndustryLTD investors, so let's see if fundamentals drove the company's five-year performance.

Check out our latest analysis for Yunnan Lincang Xinyuan Germanium IndustryLTD

Given that Yunnan Lincang Xinyuan Germanium IndustryLTD only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

For the last half decade, Yunnan Lincang Xinyuan Germanium IndustryLTD can boast revenue growth at a rate of 5.8% per year. Put simply, that growth rate fails to impress. In comparison, the share price rise of 19% per year over the last half a decade is pretty impressive. While we wouldn't be overly concerned, it might be worth checking whether you think the fundamental business gains really justify the share price action. It may be that the market is pretty optimistic about Yunnan Lincang Xinyuan Germanium IndustryLTD.

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

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. This free report showing analyst forecasts should help you form a view on Yunnan Lincang Xinyuan Germanium IndustryLTD

A Different Perspective

It's good to see that Yunnan Lincang Xinyuan Germanium IndustryLTD has rewarded shareholders with a total shareholder return of 106% in the last twelve months. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 19%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Yunnan Lincang Xinyuan Germanium IndustryLTD better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Yunnan Lincang Xinyuan Germanium IndustryLTD you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.