While it may not be enough for some shareholders, we think it is good to see the Ningbo GQY Video & Telecom Joint-Stock Co., Ltd. (SZSE:300076) share price up 16% in a single quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 19% in the last three years, falling well short of the market return.

Since Ningbo GQY Video & Telecom has shed CN¥365m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

View our latest analysis for Ningbo GQY Video & Telecom

Ningbo GQY Video & Telecom wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good 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, Ningbo GQY Video & Telecom saw its revenue grow by 7.5% per year, compound. That's not a very high growth rate considering it doesn't make profits. Indeed, the stock dropped 6% over the last three years. If revenue growth accelerates, we might see the share price bounce. But ultimately the key will be whether the company can become profitability.

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

This free interactive report on Ningbo GQY Video & Telecom's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

The total return of 16% received by Ningbo GQY Video & Telecom shareholders over the last year isn't far from the market return of -17%. So last year was actually even worse than the last five years, which cost shareholders 2% per year. Weak performance over the long term usually destroys market confidence in a stock, but bargain hunters may want to take a closer look for signs of a turnaround. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

We will like Ningbo GQY Video & Telecom 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.