One Stop Systems, Inc. (NASDAQ:OSS) shareholders will doubtless be very grateful to see the share price up 40% in the last month. But that doesn't change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 63%. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.

While the stock has risen 27% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

View our latest analysis for One Stop Systems

Given that One Stop Systems 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 expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years, One Stop Systems saw its revenue grow by 11% per year, compound. That's a pretty good rate of top-line growth. So some shareholders would be frustrated with the compound loss of 18% per year. 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).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Investors in One Stop Systems had a tough year, with a total loss of 13%, against a market gain of about 23%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 0.6% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand One Stop Systems better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with One Stop Systems , and understanding them should be part of your investment process.

But note: One Stop Systems may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).