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Synthesis Electronic TechnologyLtd (SZSE:300479) Pulls Back 11% This Week, but Still Delivers Shareholders Decent 9.8% CAGR Over 5 Years

Simply Wall St ·  Oct 24, 2023 03:37

Synthesis Electronic Technology Co.,Ltd. (SZSE:300479) shareholders have seen the share price descend 11% over the month. But that doesn't change the fact that the returns over the last five years have been pleasing. Its return of 59% has certainly bested the market return!

While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

Check out our latest analysis for Synthesis Electronic TechnologyLtd

Given that Synthesis Electronic TechnologyLtd 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years Synthesis Electronic TechnologyLtd saw its revenue shrink by 2.9% per year. Despite the lack of revenue growth, the stock has returned a respectable 10%, compound, over that time. To us that suggests that there probably isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
SZSE:300479 Earnings and Revenue Growth October 24th 2023

Take a more thorough look at Synthesis Electronic TechnologyLtd's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Synthesis Electronic TechnologyLtd shareholders have received a total shareholder return of 2.1% over the last year. However, the TSR over five years, coming in at 10% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand Synthesis Electronic TechnologyLtd better, we need to consider many other factors. Even so, be aware that Synthesis Electronic TechnologyLtd is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

But note: Synthesis Electronic TechnologyLtd 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 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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