JiangSu WuZhong Pharmaceutical Development (SHSE:600200) delivers shareholders splendid 16% CAGR over 5 years, surging 7.7% in the last week alone

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. For instance, the price of JiangSu WuZhong Pharmaceutical Development Co., Ltd. (SHSE:600200) stock is up an impressive 112% over the last five years. It's also good to see the share price up 25% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 28% in 90 days).

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 JiangSu WuZhong Pharmaceutical Development

JiangSu WuZhong Pharmaceutical Development wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

For the last half decade, JiangSu WuZhong Pharmaceutical Development can boast revenue growth at a rate of 3.4% per year. Put simply, that growth rate fails to impress. So we wouldn't have expected to see the share price to have lifted 16% for each year during that time, but that's what happened. Shareholders should be pretty happy with that, although interested investors might want to examine the financial data more closely to see if the gains are really justified. It may be that the market is pretty optimistic about JiangSu WuZhong Pharmaceutical Development.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

If you are thinking of buying or selling JiangSu WuZhong Pharmaceutical Development stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that JiangSu WuZhong Pharmaceutical Development shareholders have received a total shareholder return of 15% over the last year. However, the TSR over five years, coming in at 16% per year, is even more impressive. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

We will like JiangSu WuZhong Pharmaceutical Development better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.