Investors might be losing patience for NanJing Sanchao Advanced MaterialsLtd's (SZSE:300554) increasing losses, as stock sheds 11% over the past week

It's been a soft week for NanJing Sanchao Advanced Materials Co.,Ltd. (SZSE:300554) shares, which are down 11%. On the bright side the returns have been quite good over the last half decade. After all, the share price is up a market-beating 39% in that time.

Since the long term performance has been good but there's been a recent pullback of 11%, let's check if the fundamentals match the share price.

Check out our latest analysis for NanJing Sanchao Advanced MaterialsLtd

NanJing Sanchao Advanced MaterialsLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

For the last half decade, NanJing Sanchao Advanced MaterialsLtd can boast revenue growth at a rate of 18% per year. Even measured against other revenue-focussed companies, that's a good result. It's good to see that the stock has 7%, but not entirely surprising given revenue shows strong growth. If the strong revenue growth continues, we'd hope to see the share price to follow, in time. Of course, you'll have to research the business more fully to figure out if this is an attractive opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at NanJing Sanchao Advanced MaterialsLtd's financial health with this free report on its balance sheet.

A Different Perspective

Investors in NanJing Sanchao Advanced MaterialsLtd had a tough year, with a total loss of 7.1% (including dividends), against a market gain of about 14%. 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 7% 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 NanJing Sanchao Advanced MaterialsLtd better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for NanJing Sanchao Advanced MaterialsLtd (of which 1 makes us a bit uncomfortable!) you should know about.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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.