The 56% return this week takes Kaisa Health Group Holdings' (HKG:876) shareholders one-year gains to 254%

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Kaisa Health Group Holdings Limited (HKG:876) share price has soared 254% in the last 1 year. Most would be very happy with that, especially in just one year! It's up an even more impressive 360% over the last quarter. However, the longer term returns haven't been so impressive, with the stock up just 2.2% in the last three years.

Since it's been a strong week for Kaisa Health Group Holdings shareholders, let's have a look at trend of the longer term fundamentals.

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Given that Kaisa Health Group Holdings 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.

Kaisa Health Group Holdings actually shrunk its revenue over the last year, with a reduction of 8.5%. We're a little surprised to see the share price pop 254% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

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

Take a more thorough look at Kaisa Health Group Holdings' financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Kaisa Health Group Holdings shareholders have received a total shareholder return of 254% over the last year. That certainly beats the loss of about 6% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Kaisa Health Group Holdings better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Kaisa Health Group Holdings (at least 1 which is concerning) , and understanding them should be part of your investment process.

Of course Kaisa Health Group Holdings 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 Hong Kong 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.