The 36% return this week takes Guangdong Tloong Technology GroupLtd's (SZSE:300063) shareholders five-year gains to 351%

For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. Just think about the savvy investors who held Guangdong Tloong Technology Group Co.,Ltd (SZSE:300063) shares for the last five years, while they gained 351%. This just goes to show the value creation that some businesses can achieve. It's also good to see the share price up 222% over the last quarter.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

See our latest analysis for Guangdong Tloong Technology GroupLtd

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last half decade, Guangdong Tloong Technology GroupLtd became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Guangdong Tloong Technology GroupLtd's key metrics by checking this interactive graph of Guangdong Tloong Technology GroupLtd's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Guangdong Tloong Technology GroupLtd has rewarded shareholders with a total shareholder return of 99% in the last twelve months. That's better than the annualised return of 35% 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 Guangdong Tloong Technology GroupLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Guangdong Tloong Technology GroupLtd (including 1 which makes us a bit uncomfortable) .

Of course Guangdong Tloong Technology GroupLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.