It is a pleasure to report that the Xingmin Intelligent Transportation Systems (Group) Co., Ltd. (SZSE:002355) is up 53% in the last quarter. But if you look at the last five years the returns have not been good. You would have done a lot better buying an index fund, since the stock has dropped 12% in that half decade.

On a more encouraging note the company has added CN¥478m 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.

View our latest analysis for Xingmin Intelligent Transportation Systems (Group)

Because Xingmin Intelligent Transportation Systems (Group) made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last five years Xingmin Intelligent Transportation Systems (Group) saw its revenue shrink by 15% per year. That's definitely a weaker result than most pre-profit companies report. On the face of it we'd posit the share price fall of 2% compound, over five years is well justified by the fundamental deterioration. We doubt many shareholders are delighted with this share price performance. Risk averse investors probably wouldn't like this one much.

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 Xingmin Intelligent Transportation Systems (Group) stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Xingmin Intelligent Transportation Systems (Group) has rewarded shareholders with a total shareholder return of 11% in the last twelve months. Notably the five-year annualised TSR loss of 2% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Xingmin Intelligent Transportation Systems (Group) better, we need to consider many other factors. Take risks, for example - Xingmin Intelligent Transportation Systems (Group) has 2 warning signs we think you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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.