Yunnan Metropolitan RealEstate DevelopmentLtd (SHSE:600239) delivers shareholders notable 9.6% CAGR over 3 years, surging 14% in the last week alone

By buying an index fund, investors can approximate the average market return. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, the Yunnan Metropolitan RealEstate Development Co.Ltd (SHSE:600239) share price is up 31% in the last three years, clearly besting the market decline of around 7.4% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 25%.

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.

Because Yunnan Metropolitan RealEstate DevelopmentLtd 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years Yunnan Metropolitan RealEstate DevelopmentLtd saw its revenue shrink by 43% per year. The revenue growth might be lacking but the share price has gained 10% each year in that time. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Yunnan Metropolitan RealEstate DevelopmentLtd has rewarded shareholders with a total shareholder return of 25% in the last twelve months. That certainly beats the loss of about 0.1% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: Yunnan Metropolitan RealEstate DevelopmentLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.