Beijing Small City Technology Co., Ltd. (SZSE:300139) has generated a respectable shareholder return of 36% over five years.

When investing, we typically look for stocks that will outperform the market average. Active stock selection involves risks (and diversification is necessary), but it can also produce excess returns. For example: Beijing Xiao Cheng Technology Co., Ltd. (SZSE:300139) The share price has risen 36% over the past five years, obviously beating the market return of around 3.2% (ignoring dividends).

Given the strong seven-day performance, let’s take a look at how the company’s fundamentals have helped drive long-term shareholder returns.

See our latest analysis for Beijing XIAOCHENG Technology Stock

Since Beijing Small City Technology stock lost money over the past 12 months, the market is probably more focused on revenue and revenue growth, at least for now. When a company isn’t making profits, we generally expect good revenue growth. Some companies postpone profitability growth in order to grow revenue sooner, in which case we would expect good top-line growth to make up for the revenue shortfall.

Beijing Small City Technology Co. Ltd.’s earnings have grown 2.0% per year over the past five years. Simply put, this growth rate is not impressive. This modest growth is probably reflected more broadly in the share price, which has risen 6% per year over five years. We’d like to see the underlying business grow earnings a little faster.

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

Let’s take a closer look at the financial situation of Beijing XIAOCHENG Technology stock free Report the balance sheet.

A different perspective

We’re pleased to report that Beijing Xiaocheng Technology stockholders have received a total shareholder return of 33% over one year. This is higher than the 6% annualized return over five years, suggesting that the company has been performing well recently. Those with an optimistic view might view the recent improvement in TSR as an indication that the business itself is performing better over time. I find it very interesting to look at share price over the long term as an indicator of business performance. However, to gain true insight, other information needs to be considered. For example, Beijing Xiaocheng Technology stock is subject to risk. 1. Warning Signs I think you should know.

of course, You may find a great investment by looking elsewhere. Take a look at this free A list of companies that are expected to see revenue growth.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on China exchanges.

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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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