The 28% return this week takes Shenzhen Prolto Supply Chain ManagementLtd's (SZSE:002769) shareholders three-year gains to 57%

One simple way to benefit from the stock market is to buy an index fund. But if you pick the right individual stocks, you could make more than that. For example, the Shenzhen Prolto Supply Chain Management Co.,Ltd (SZSE:002769) share price is up 56% in the last three years, clearly besting the market decline of around 17% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 16%.

The past week has proven to be lucrative for Shenzhen Prolto Supply Chain ManagementLtd investors, so let's see if fundamentals drove the company's three-year performance.

See our latest analysis for Shenzhen Prolto Supply Chain ManagementLtd

Because Shenzhen Prolto Supply Chain ManagementLtd 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years Shenzhen Prolto Supply Chain ManagementLtd saw its revenue shrink by 58% per year. Despite the lack of revenue growth, the stock has returned 16%, compound, over three years. Unless the company is going to make profits soon, we would be pretty cautious about it.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Shenzhen Prolto Supply Chain ManagementLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Shenzhen Prolto Supply Chain ManagementLtd has rewarded shareholders with a total shareholder return of 16% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 4% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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 - Shenzhen Prolto Supply Chain ManagementLtd has 1 warning sign we think you should be aware of.

But note: Shenzhen Prolto Supply Chain ManagementLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.