The 23% return this week takes Beijing Philisense Technology's (SZSE:300287) shareholders one-year gains to 159%

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Beijing Philisense Technology Co., Ltd. (SZSE:300287) share price has soared 159% return in just a single year. It's also up 75% in about a month. However, the longer term returns haven't been so impressive, with the stock up just 26% in the last three years.

Since it's been a strong week for Beijing Philisense Technology shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Beijing Philisense Technology

Given that Beijing Philisense 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 year Beijing Philisense Technology saw its revenue shrink by 32%. So we would not have expected the share price to rise 159%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Beijing Philisense Technology's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Beijing Philisense Technology has rewarded shareholders with a total shareholder return of 159% in the last twelve months. That gain is better than the annual TSR over five years, which is 6%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Beijing Philisense Technology better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Beijing Philisense Technology .

But note: Beijing Philisense Technology 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.