Huizhou Speed Wireless Technology Co.,Ltd. (SZSE:300322) has rebounded strongly over the last week, with the share price soaring 37%. But that doesn't change the fact that the returns over the last five years have been less than pleasing. In fact, the share price is down 42%, which falls well short of the return you could get by buying an index fund.

The recent uptick of 37% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Huizhou Speed Wireless TechnologyLtd wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last five years Huizhou Speed Wireless TechnologyLtd saw its revenue shrink by 1.8% per year. That's not what investors generally want to see. The stock hasn't done well for shareholders in the last five years, falling 7%, annualized. Unfortunately, though, it makes sense given the lack of either profits or revenue growth. Without profits, its hard to see how shareholders win if the revenue keeps falling.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

Although it hurts that Huizhou Speed Wireless TechnologyLtd returned a loss of 15% in the last twelve months, the broader market was actually worse, returning a loss of 20%. Unfortunately, last year's performance may indicate unresolved challenges, given that it's worse than the annualised loss of 7% over the last half decade. While some investors do well specializing in buying companies that are struggling (but nonetheless undervalued), don't forget that Buffett said that 'turnarounds seldom turn'. 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. For example, we've discovered 3 warning signs for Huizhou Speed Wireless TechnologyLtd that you should be aware of before investing here.

Of course Huizhou Speed Wireless TechnologyLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.