Investors in Chanjet Information Technology (HKG:1588) from three years ago are still down 54%, even after 13% gain this past week

It is doubtless a positive to see that the Chanjet Information Technology Company Limited (HKG:1588) share price has gained some 44% in the last three months. But that doesn't change the fact that the returns over the last three years have been disappointing. Tragically, the share price declined 54% in that time. So it is really good to see an improvement. After all, could be that the fall was overdone.

While the last three years has been tough for Chanjet Information Technology shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

View our latest analysis for Chanjet Information Technology

Chanjet Information Technology isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong 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 three years, Chanjet Information Technology saw its revenue grow by 15% per year, compound. That's a fairly respectable growth rate. So some shareholders would be frustrated with the compound loss of 15% per year. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).

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

If you are thinking of buying or selling Chanjet Information Technology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Chanjet Information Technology shareholders have received a total shareholder return of 45% over one year. There's no doubt those recent returns are much better than the TSR loss of 1.9% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

We will like Chanjet Information Technology better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider 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.