The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Citic Guoan Wine CO.,LTD (SHSE:600084) share price has flown 163% in the last three years. Most would be happy with that. In contrast, the stock has fallen 8.9% in the last 30 days. We note that the broader market is down 0.9% in the last month, and this may have impacted Citic Guoan WineLTD's share price.

Since the long term performance has been good but there's been a recent pullback of 6.3%, let's check if the fundamentals match the share price.

View our latest analysis for Citic Guoan WineLTD

Given that Citic Guoan WineLTD only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Citic Guoan WineLTD actually saw its revenue drop by 0.7% per year over three years. So the share price gain of 38% per year is quite surprising. It's fair to say shareholders are definitely counting on a bright future.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Citic Guoan WineLTD shareholders have gained 58% (in total) over the last year. That gain actually surpasses the 38% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand Citic Guoan WineLTD better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Citic Guoan WineLTD .

We will like Citic Guoan WineLTD better if we see some big insider buys. While we wait, check out this free list of growing companies 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 CN 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.