Yahoo Finance Niu Technologies (NASDAQ:NIU) adds US$79m to market cap in the past 7 days, though investors from three years ago are still down 56%
Niu Technologies (NASDAQ:NIU) shareholders should be happy to see the share price up 30% in the last week. Meanwhile over the last three years the stock has dropped hard. In that time, the share price dropped 56%. So the improvement may be a real relief to some. The rise has some hopeful, but turnarounds are often precarious.
Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline.
Check out our latest analysis for Niu Technologies
Niu Technologies 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over three years, Niu Technologies grew revenue at 17% per year. That's a fairly respectable growth rate. That contrasts with the weak share price, which has fallen 16% compounded, over three years. The market must have had really high expectations to be disappointed with this progress. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).
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 Niu Technologies' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Over the last year, Niu Technologies shareholders took a loss of 40%. In contrast the market gained about 5.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The three-year loss of 16% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. You could get a better understanding of Niu Technologies' growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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.
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