Dong Yi Ri Sheng Home Decoration Group Co.,Ltd. (SZSE:002713) shareholders should be happy to see the share price up 30% in the last month. But that doesn't change the fact that the returns over the last five years have been less than pleasing. In fact, the share price is down 35%, which falls well short of the return you could get by buying an index fund.

On a more encouraging note the company has added CN¥583m to its market cap in just the last 7 days, so let's see if we can determine what's driven the five-year loss for shareholders.

Dong Yi Ri Sheng Home Decoration GroupLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

Over half a decade Dong Yi Ri Sheng Home Decoration GroupLtd reduced its trailing twelve month revenue by 6.2% for each year. While far from catastrophic that is not good. The stock hasn't done well for shareholders in the last five years, falling 6%, annualized. But it doesn't surprise given the falling revenue. It might be worth watching for signs of a turnaround - buyers are probably expecting one.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Dong Yi Ri Sheng Home Decoration GroupLtd's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Dong Yi Ri Sheng Home Decoration GroupLtd shareholders, and that cash payout explains why its total shareholder loss of 32%, over the last 5 years, isn't as bad as the share price return.

A Different Perspective

While it's certainly disappointing to see that Dong Yi Ri Sheng Home Decoration GroupLtd shares lost 9.4% throughout the year, that wasn't as bad as the market loss of 19%. Unfortunately, last year's performance may indicate unresolved challenges, given that it's worse than the annualised loss of 6% over the last half decade. Whilst Baron Rothschild does tell the investor "buy when there's blood in the streets, even if the blood is your own", buyers would need to examine the data carefully to be comfortable that the business itself is sound. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

Of course Dong Yi Ri Sheng Home Decoration GroupLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.