Recent 4.8% pullback isn't enough to hurt long-term Zhuhai Aerospace Microchips Science & Technology (SZSE:300053) shareholders, they're still up 38% over 3 years

It hasn't been the best quarter for Zhuhai Aerospace Microchips Science & Technology Co., Ltd. (SZSE:300053) shareholders, since the share price has fallen 18% in that time. But don't let that distract from the very nice return generated over three years. In the last three years the share price is up, 38%: better than the market.

Since the long term performance has been good but there's been a recent pullback of 4.8%, let's check if the fundamentals match the share price.

Check out our latest analysis for Zhuhai Aerospace Microchips Science & Technology

Given that Zhuhai Aerospace Microchips Science & Technology 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. When a company doesn't make profits, we'd generally hope to see good 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 3 years Zhuhai Aerospace Microchips Science & Technology saw its revenue shrink by 39% per year. The revenue growth might be lacking but the share price has gained 11% each year in that time. Unless the company is going to make profits soon, we would be pretty cautious about it.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

If you are thinking of buying or selling Zhuhai Aerospace Microchips Science & Technology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Zhuhai Aerospace Microchips Science & Technology shareholders have received a total shareholder return of 37% over the last year. There's no doubt those recent returns are much better than the TSR loss of 3% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Zhuhai Aerospace Microchips Science & Technology .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.