Strong week for Liaoning OxiranchemInc (SZSE:300082) shareholders doesn't alleviate pain of three-year loss

It is a pleasure to report that the Liaoning Oxiranchem,Inc. (SZSE:300082) is up 71% in the last quarter. But that doesn't change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 63%. So it is really good to see an improvement. Perhaps the company has turned over a new leaf.

The recent uptick of 14% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for Liaoning OxiranchemInc

Because Liaoning OxiranchemInc made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

Over the last three years, Liaoning OxiranchemInc's revenue dropped 23% per year. That's definitely a weaker result than most pre-profit companies report. With no profits and falling revenue it is no surprise that investors have been dumping the stock, pushing the price down by 18% per year over that time. When revenue is dropping, and losses are still costing, and the share price sinking fast, it's fair to ask if something is remiss. It could be a while before the company repays long suffering shareholders with share price gains.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

This free interactive report on Liaoning OxiranchemInc's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Liaoning OxiranchemInc provided a TSR of 3.3% over the year. That's fairly close to the broader market return. We should note here that the five-year TSR is more impressive, at 7% per year. Although the share price growth has slowed, the longer term story points to a business well worth watching. It's always interesting to track share price performance over the longer term. But to understand Liaoning OxiranchemInc better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Liaoning OxiranchemInc you should know about.

Of course Liaoning OxiranchemInc 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.