Over the last month the Yangzhou Seashine New Materials Co.,Ltd. (SZSE:300885) has been much stronger than before, rebounding by 31%. But that doesn't change the fact that the returns over the last year have been less than pleasing. The cold reality is that the stock has dropped 12% in one year, under-performing the market.

On a more encouraging note the company has added CN¥469m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

Check out our latest analysis for Yangzhou Seashine New MaterialsLtd

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

Unfortunately Yangzhou Seashine New MaterialsLtd reported an EPS drop of 6.5% for the last year. The share price decline of 12% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.

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

Dive deeper into Yangzhou Seashine New MaterialsLtd's key metrics by checking this interactive graph of Yangzhou Seashine New MaterialsLtd's earnings, revenue and cash flow.

A Different Perspective

We doubt Yangzhou Seashine New MaterialsLtd shareholders are happy with the loss of 12% over twelve months. That falls short of the market, which lost 7.4%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 2.0%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand Yangzhou Seashine New MaterialsLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Yangzhou Seashine New MaterialsLtd that you should be aware of before investing here.

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 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.