Tianjin Troila Information TechnologyLtd (SHSE:600225) adds CN¥409m to market cap in the past 7 days, though investors from a year ago are still down 22%

It is a pleasure to report that the Tianjin Troila Information Technology Co.,Ltd. (SHSE:600225) is up 81% in the last quarter. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 22% in one year, under-performing the market.

While the last year has been tough for Tianjin Troila Information TechnologyLtd shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

See our latest analysis for Tianjin Troila Information TechnologyLtd

Tianjin Troila Information TechnologyLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. 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.

In the last twelve months, Tianjin Troila Information TechnologyLtd increased its revenue by 5.8%. While that may seem decent it isn't great considering the company is still making a loss. Given this lacklustre revenue growth, the share price drop of 22% seems pretty appropriate. In a hot market it's easy to forget growth is the life-blood of a loss making company. So remember, if you buy a profitless company then you risk being a profitless investor.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Investors in Tianjin Troila Information TechnologyLtd had a tough year, with a total loss of 22%, against a market gain of about 6.3%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 1.0% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Tianjin Troila Information TechnologyLtd better, we need to consider many other factors. For instance, we've identified 1 warning sign for Tianjin Troila Information TechnologyLtd that you should be aware of.

We will like Tianjin Troila Information TechnologyLtd 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.