Li Peng Enterprise (TPE:1447) Shareholders Booked A 27% Gain In The Last Year

There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But not every stock you buy will perform as well as the overall market. Unfortunately for shareholders, while the Li Peng Enterprise Co., Ltd. (TPE:1447) share price is up 27% in the last year, that falls short of the market return. However, the longer term returns haven't been so impressive, with the stock up just 5.4% in the last three years.

See our latest analysis for Li Peng Enterprise

Given that Li Peng Enterprise 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 expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Li Peng Enterprise actually shrunk its revenue over the last year, with a reduction of 21%. Given the revenue reduction the modest 27% share price rise over the year seems pretty decent. We'd want to see progress to profitability before getting too interested in this stock.

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

Take a more thorough look at Li Peng Enterprise's financial health with this free report on its balance sheet.

A Different Perspective

Li Peng Enterprise provided a TSR of 27% over the last twelve months. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 1.7% over half a decade It is possible that returns will improve along with the business fundamentals. 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. For instance, we've identified 2 warning signs for Li Peng Enterprise that you should be aware of.

But note: Li Peng Enterprise 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 TW exchanges.

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This article by Simply Wall St is general in nature. 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.
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