Even after rising 14% this past week, Jiangsu Huifeng Bio Agriculture (SZSE:002496) shareholders are still down 21% over the past five years

It's nice to see the Jiangsu Huifeng Bio Agriculture Co., Ltd. (SZSE:002496) share price up 14% in a week. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 21% in that half decade.

On a more encouraging note the company has added CN¥437m to its market cap in just the last 7 days, so let's see if we can determine what's driven the five-year loss for shareholders.

View our latest analysis for Jiangsu Huifeng Bio Agriculture

Given that Jiangsu Huifeng Bio Agriculture 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 desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Over half a decade Jiangsu Huifeng Bio Agriculture reduced its trailing twelve month revenue by 36% for each year. That's definitely a weaker result than most pre-profit companies report. On the face of it we'd posit the share price fall of 4% compound, over five years is well justified by the fundamental deterioration. We doubt many shareholders are delighted with this share price performance. It is possible for businesses to bounce back but as Buffett says, 'turnarounds seldom turn'.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Jiangsu Huifeng Bio Agriculture stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Jiangsu Huifeng Bio Agriculture shareholders have received a total shareholder return of 8.5% over one year. That certainly beats the loss of about 4% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Jiangsu Huifeng Bio Agriculture better, we need to consider many other factors. Even so, be aware that Jiangsu Huifeng Bio Agriculture is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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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.