While shareholders of Gosuncn Technology Group (SZSE:300098) are in the black over 1 year, those who bought a week ago aren't so fortunate

Gosuncn Technology Group Co., Ltd. (SZSE:300098) shareholders have seen the share price descend 19% over the month. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 47% in that time.

Although Gosuncn Technology Group has shed CN¥624m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Gosuncn Technology Group 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Gosuncn Technology Group actually shrunk its revenue over the last year, with a reduction of 17%. The stock is up 47% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So it makes a lot of sense to check out what analysts think Gosuncn Technology Group will earn in the future (free profit forecasts).

A Different Perspective

It's nice to see that Gosuncn Technology Group shareholders have received a total shareholder return of 47% over the last year. That certainly beats the loss of about 3% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

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.