Even though TVZone Media (SHSE:603721) has lost CN¥506m market cap in last 7 days, shareholders are still up 39% over 5 years

TVZone Media Co., Ltd. (SHSE:603721) shareholders might be rather concerned because the share price has dropped 32% in the last month. On the bright side the returns have been quite good over the last half decade. After all, the share price is up a market-beating 36% in that time.

While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

Check out our latest analysis for TVZone Media

Because TVZone Media 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years TVZone Media saw its revenue shrink by 4.5% per year. Even though revenue hasn't increased, the stock actually gained 6%, per year, during the same period. It's probably worth checking other factors such as the profitability, to try to understand the share price action. It may not be reflecting the revenue.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Take a more thorough look at TVZone Media's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered TVZone Media's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. TVZone Media's TSR of 39% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

It's good to see that TVZone Media has rewarded shareholders with a total shareholder return of 11% in the last twelve months. That gain is better than the annual TSR over five years, which is 7%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand TVZone Media better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with TVZone Media , and understanding them should be part of your investment process.

Of course TVZone Media 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.