The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For example, the Jiangsu Boamax Technologies Group Co.,Ltd. (SZSE:002514) share price has soared 114% in the last three years. How nice for those who held the stock! It's even up 7.7% in the last week.
On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.
See our latest analysis for Jiangsu Boamax Technologies GroupLtd
Given that Jiangsu Boamax Technologies GroupLtd 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.
Jiangsu Boamax Technologies GroupLtd's revenue trended up 9.3% each year over three years. That's pretty nice growth. It's fair to say that the market has acknowledged the growth by pushing the share price up 29% per year. The business has made good progress on the top line, but the market is extrapolating the growth. It would be worth thinking about when profits will flow, since that milestone will attract more attention.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Jiangsu Boamax Technologies GroupLtd's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market lost about 7.9% in the twelve months, Jiangsu Boamax Technologies GroupLtd shareholders did even worse, losing 21%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 10%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Jiangsu Boamax Technologies GroupLtd better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Jiangsu Boamax Technologies GroupLtd (including 1 which can't be ignored) .
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.