Cashway FintechLtd (SHSE:603106) adds CN¥302m to market cap in the past 7 days, though investors from five years ago are still down 32%

It's nice to see the Cashway Fintech Co.,Ltd. (SHSE:603106) share price up 14% in a week. But if you look at the last five years the returns have not been good. In fact, the share price is down 32%, which falls well short of the return you could get by buying an index fund.

While the stock has risen 14% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

View our latest analysis for Cashway FintechLtd

Given that Cashway FintechLtd 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. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over half a decade Cashway FintechLtd reduced its trailing twelve month revenue by 15% for each year. That's definitely a weaker result than most pre-profit companies report. On the face of it we'd posit the share price fall of 6% compound, over five years is well justified by the fundamental deterioration. We doubt many shareholders are delighted with this share price performance. Risk averse investors probably wouldn't like this one much.

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

This free interactive report on Cashway FintechLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

The total return of 19% received by Cashway FintechLtd shareholders over the last year isn't far from the market return of -18%. Unfortunately, last year's performance is a deterioration of an already poor long term track record, given the loss of 6% per year over the last five years. Weak performance over the long term usually destroys market confidence in a stock, but bargain hunters may want to take a closer look for signs of a turnaround. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Cashway FintechLtd is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

Of course Cashway FintechLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com