Investors ignore increasing losses at Jiangsu Lanfeng Bio-chemicalLtd (SZSE:002513) as stock jumps 14% this past week

Jiangsu Lanfeng Bio-chemical Co.,Ltd (SZSE:002513) shareholders might be concerned after seeing the share price drop 18% in the last quarter. But don't let that distract from the very nice return generated over three years. After all, the share price is up a market-beating 12% in that time.

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

View our latest analysis for Jiangsu Lanfeng Bio-chemicalLtd

Jiangsu Lanfeng Bio-chemicalLtd 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Jiangsu Lanfeng Bio-chemicalLtd saw its revenue grow at 13% per year. That's a very respectable growth rate. While the share price has done well, compounding at 4% yearly, over three years, that move doesn't seem over the top. If that's the case, then it could be well worth while to research the growth trajectory. Keep in mind that the strength of the balance sheet impacts the options open to the company.

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

If you are thinking of buying or selling Jiangsu Lanfeng Bio-chemicalLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Jiangsu Lanfeng Bio-chemicalLtd shareholders are up 12% for the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 1.0% per year, over five years. It could well be that the business is stabilizing. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

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.