Investors ignore increasing losses at Cashway FintechLtd (SHSE:603106) as stock jumps 15% this past week

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Cashway Fintech Co.,Ltd. (SHSE:603106) share price has soared 142% return in just a single year. It's also up 17% in about a month. Also impressive, the stock is up 36% over three years, making long term shareholders happy, too.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Check out our latest analysis for Cashway FintechLtd

Cashway FintechLtd wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Cashway FintechLtd saw its revenue shrink by 22%. We're a little surprised to see the share price pop 142% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Cashway FintechLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Cashway FintechLtd shareholders have received a total shareholder return of 142% over the last year. That gain is better than the annual TSR over five years, which is 10%. 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 Cashway FintechLtd better, we need to consider many other factors. Even so, be aware that Cashway FintechLtd is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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.