The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Innovative Medical Management Co.,Ltd. (SZSE:002173) share price is up 26% in the last 1 year, clearly besting the market decline of around 11% (not including dividends). That's a solid performance by our standards! Longer term, the stock is up 24% in three years.
Since the long term performance has been good but there's been a recent pullback of 8.2%, let's check if the fundamentals match the share price.
View our latest analysis for Innovative Medical ManagementLtd
Given that Innovative Medical ManagementLtd 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.
Innovative Medical ManagementLtd grew its revenue by 8.1% last year. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 26% in that time. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
We're pleased to report that Innovative Medical ManagementLtd shareholders have received a total shareholder return of 26% over one year. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Innovative Medical ManagementLtd better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Innovative Medical ManagementLtd .
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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.