Further weakness as Zhengzhou Tiamaes TechnologyLtd (SZSE:300807) drops 12% this week, taking five-year losses to 13%

While it may not be enough for some shareholders, we think it is good to see the Zhengzhou Tiamaes Technology Co.,Ltd (SZSE:300807) share price up 29% in a single quarter. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 15% in that half decade.

If the past week is anything to go by, investor sentiment for Zhengzhou Tiamaes TechnologyLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for Zhengzhou Tiamaes TechnologyLtd

Given that Zhengzhou Tiamaes 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. 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.

Over half a decade Zhengzhou Tiamaes TechnologyLtd reduced its trailing twelve month revenue by 12% for each year. That's definitely a weaker result than most pre-profit companies report. It seems pretty reasonable to us that the share price dipped 3% per year in that time. We doubt many shareholders are delighted with this share price performance. It is possible for businesses to bounce back but as Buffett says, 'turnarounds seldom turn'.

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. Dive deeper into the earnings by checking this interactive graph of Zhengzhou Tiamaes TechnologyLtd's earnings, revenue and cash flow.

A Different Perspective

Zhengzhou Tiamaes TechnologyLtd shareholders are up 1.3% for the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 3% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Zhengzhou Tiamaes TechnologyLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Zhengzhou Tiamaes TechnologyLtd (1 shouldn't be ignored) that you should be aware of.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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.