Jilin Electric Power Co.,Ltd. (SZSE:000875) shareholders might be concerned after seeing the share price drop 22% in the last quarter. In contrast, the return over three years has been impressive. Indeed, the share price is up a very strong 133% in that time. To some, the recent share price pullback wouldn't be surprising after such a good run. If the business can perform well for years to come, then the recent drop could be an opportunity.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

View our latest analysis for Jilin Electric PowerLtd

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Jilin Electric PowerLtd was able to grow its EPS at 38% per year over three years, sending the share price higher. We note that the 33% yearly (average) share price gain isn't too far from the EPS growth rate. Coincidence? Probably not. This suggests that sentiment and expectations have not changed drastically. Au contraire, the share price change has arguably mimicked the EPS growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that Jilin Electric PowerLtd has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Jilin Electric PowerLtd stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Jilin Electric PowerLtd shareholders have received a total shareholder return of 46% over the last year. That's better than the annualised return of 7% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Jilin Electric PowerLtd better, we need to consider many other factors. For instance, we've identified 3 warning signs for Jilin Electric PowerLtd (1 doesn't sit too well with us) that you should be aware of.

Of course Jilin Electric PowerLtd 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 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.