Swelling losses haven't held back gains for Zhengzhou Tiamaes TechnologyLtd (SZSE:300807) shareholders since they're up 38% over 3 years

It's been a soft week for Zhengzhou Tiamaes Technology Co.,Ltd (SZSE:300807) shares, which are down 16%. But don't let that distract from the very nice return generated over three years. To wit, the share price did better than an index fund, climbing 38% during that period.

Since the long term performance has been good but there's been a recent pullback of 16%, let's check if the fundamentals match the share price.

Because Zhengzhou Tiamaes TechnologyLtd made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last 3 years Zhengzhou Tiamaes TechnologyLtd saw its revenue shrink by 4.9% per year. Despite the lack of revenue growth, the stock has returned 11%, compound, over three years. Unless the company is going to make profits soon, we would be pretty cautious about it.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Zhengzhou Tiamaes TechnologyLtd's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Zhengzhou Tiamaes TechnologyLtd shareholders have received a total shareholder return of 19% over one year. That certainly beats the loss of about 4% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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. Take risks, for example - Zhengzhou Tiamaes TechnologyLtd has 2 warning signs we think you should be aware of.

Of course Zhengzhou Tiamaes TechnologyLtd 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.