Recent 3.0% pullback isn't enough to hurt long-term Genscript Biotech (HKG:1548) shareholders, they're still up 71% over 1 year

The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Genscript Biotech Corporation (HKG:1548) share price is up 71% in the last 1 year, clearly besting the market return of around 26% (not including dividends). That's a solid performance by our standards! Unfortunately the longer term returns are not so good, with the stock falling 53% in the last three years.

In light of the stock dropping 3.0% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

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Genscript Biotech isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, Genscript Biotech's revenue grew by 6.1%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 71%. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

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

Genscript Biotech is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Genscript Biotech stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

We're pleased to report that Genscript Biotech shareholders have received a total shareholder return of 71% over one year. That certainly beats the loss of about 0.4% 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. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong 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.