While it may not be enough for some shareholders, we think it is good to see the Wangli Security & Surveillance Product Co., Ltd (SHSE:605268) share price up 22% in a single quarter. But in truth the last year hasn't been good for the share price. The cold reality is that the stock has dropped 11% in one year, under-performing the market.

While the stock has risen 9.7% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for Wangli Security & Surveillance Product

While Wangli Security & Surveillance Product made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In just one year Wangli Security & Surveillance Product saw its revenue fall by 4.2%. That's not what investors generally want to see. Shareholders have seen the share price drop 11% in that time. What would you expect when revenue is falling, and it doesn't make a profit? It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

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

This free interactive report on Wangli Security & Surveillance Product's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Wangli Security & Surveillance Product shareholders are down 10% for the year (even including dividends), even worse than the market loss of 5.4%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 22%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Wangli Security & Surveillance Product is showing 4 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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