Stock Analysis

Fujian Cosunter Pharmaceutical (SZSE:300436) pulls back 12% this week, but still delivers shareholders 18% return over 1 year

SZSE:300436
Source: Shutterstock

Fujian Cosunter Pharmaceutical Co., Ltd. (SZSE:300436) shareholders might be concerned after seeing the share price drop 12% in the last week. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 18% in that time.

While the stock has fallen 12% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

View our latest analysis for Fujian Cosunter Pharmaceutical

Given that Fujian Cosunter Pharmaceutical didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Fujian Cosunter Pharmaceutical grew its revenue by 28% last year. That's a fairly respectable growth rate. While the share price performed well, gaining 18% over twelve months, you could argue the revenue growth warranted it. If the company can maintain the revenue growth, the share price could go higher still. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)

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

earnings-and-revenue-growth
SZSE:300436 Earnings and Revenue Growth December 19th 2024

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

A Different Perspective

We're pleased to report that Fujian Cosunter Pharmaceutical shareholders have received a total shareholder return of 18% over one year. Notably the five-year annualised TSR loss of 1.6% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 3 warning signs we've spotted with Fujian Cosunter Pharmaceutical .

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are 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.