Jiangsu Huifeng Bio Agriculture (SZSE:002496) delivers shareholders 28% return over 1 year, surging 9.9% in the last week alone

Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Jiangsu Huifeng Bio Agriculture Co., Ltd. (SZSE:002496) share price is up 28% in the last 1 year, clearly besting the market decline of around 11% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Zooming out, the stock is actually down 11% in the last three years.

The past week has proven to be lucrative for Jiangsu Huifeng Bio Agriculture investors, so let's see if fundamentals drove the company's one-year performance.

View our latest analysis for Jiangsu Huifeng Bio Agriculture

Jiangsu Huifeng Bio Agriculture isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. 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.

Jiangsu Huifeng Bio Agriculture actually shrunk its revenue over the last year, with a reduction of 15%. Despite the lack of revenue growth, the stock has returned a solid 28% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Jiangsu Huifeng Bio Agriculture's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Jiangsu Huifeng Bio Agriculture shareholders have received a total shareholder return of 28% over one year. That's better than the annualised return of 1.0% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Jiangsu Huifeng Bio Agriculture better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Jiangsu Huifeng Bio Agriculture 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.