By buying an index fund, you can roughly match the market return with ease. But if you pick the right individual stocks, you could make more than that. Just take a look at Nanjing Central Emporium (Group) Stocks Co., Ltd. (SHSE:600280), which is up 70%, over three years, soundly beating the market decline of 14% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 25%.
Since it's been a strong week for Nanjing Central Emporium (Group) Stocks shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for Nanjing Central Emporium (Group) Stocks
Given that Nanjing Central Emporium (Group) Stocks 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. 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 3 years Nanjing Central Emporium (Group) Stocks saw its revenue shrink by 21% per year. The revenue growth might be lacking but the share price has gained 19% each year in that time. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Nanjing Central Emporium (Group) Stocks' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that Nanjing Central Emporium (Group) Stocks shareholders have received a total shareholder return of 25% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 3% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Nanjing Central Emporium (Group) Stocks is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...
But note: Nanjing Central Emporium (Group) Stocks 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.