Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. For example, the YOOZOO Interactive Co., Ltd. (SZSE:002174) share price is up 51% in the last 1 year, clearly besting the market decline of around 5.0% (not including dividends). That's a solid performance by our standards! Zooming out, the stock is actually down 26% in the last three years.
The past week has proven to be lucrative for YOOZOO Interactive investors, so let's see if fundamentals drove the company's one-year performance.
See our latest analysis for YOOZOO Interactive
Given that YOOZOO Interactive 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year YOOZOO Interactive saw its revenue shrink by 21%. Despite the lack of revenue growth, the stock has returned a solid 51% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at YOOZOO Interactive's financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that YOOZOO Interactive shareholders have received a total shareholder return of 51% over one year. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. You could get a better understanding of YOOZOO Interactive's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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.