Kunshan Kersen Science & TechnologyLtd (SHSE:603626) adds CN¥502m to market cap in the past 7 days, though investors from three years ago are still down 24%

Kunshan Kersen Science & Technology Co.,Ltd. (SHSE:603626) shareholders will doubtless be very grateful to see the share price up 65% in the last quarter. But we must note it seems the three year returns are less impressive. To be specific, the share price is a full 24% lower, while the market is down , with a return of (-21%)..

The recent uptick of 11% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Check out our latest analysis for Kunshan Kersen Science & TechnologyLtd

Given that Kunshan Kersen Science & TechnologyLtd 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. 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.

Over the last three years, Kunshan Kersen Science & TechnologyLtd's revenue dropped 14% per year. That's not what investors generally want to see. The annual decline of 8% per year in that period has clearly disappointed holders. That makes sense given the lack of either profits or revenue growth. Of course, sentiment could become too negative, and the company may actually be making progress to profitability.

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

Take a more thorough look at Kunshan Kersen Science & TechnologyLtd's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Kunshan Kersen Science & TechnologyLtd shareholders have received a total shareholder return of 22% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 1.9%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Even so, be aware that Kunshan Kersen Science & TechnologyLtd is showing 4 warning signs in our investment analysis , and 3 of those are concerning...

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.