Jiumaojiu International Holdings Limited (HKG:9922) shareholders will doubtless be very grateful to see the share price up 48% in the last quarter. But in truth the last year hasn't been good for the share price. After all, the share price is down 40% in the last year, significantly under-performing the market.

With the stock having lost 9.1% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for Jiumaojiu International Holdings

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the unfortunate twelve months during which the Jiumaojiu International Holdings share price fell, it actually saw its earnings per share (EPS) improve by 163%. Of course, the situation might betray previous over-optimism about growth.

It's surprising to see the share price fall so much, despite the improved EPS. But we might find some different metrics explain the share price movements better.

With a low yield of 0.3% we doubt that the dividend influences the share price much. Jiumaojiu International Holdings' revenue is actually up 54% over the last year. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free report showing analyst forecasts should help you form a view on Jiumaojiu International Holdings

A Different Perspective

Jiumaojiu International Holdings shareholders are down 40% for the year (even including dividends), even worse than the market loss of 20%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 48% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Jiumaojiu International Holdings that you should be aware of.

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 HK exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.