It is doubtless a positive to see that the Shenzhen JPT Opto-Electronics Co., Ltd. (SHSE:688025) share price has gained some 61% in the last three months. But that is minimal compensation for the share price under-performance over the last year. In fact, the price has declined 13% in a year, falling short of the returns you could get by investing in an index fund.

Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.

Check out our latest analysis for Shenzhen JPT Opto-Electronics

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the unfortunate twelve months during which the Shenzhen JPT Opto-Electronics share price fell, it actually saw its earnings per share (EPS) improve by 59%. It could be that the share price was previously over-hyped.

It's fair to say that the share price does not seem to be reflecting the EPS growth. So it's well worth checking out some other metrics, too.

Given the yield is quite low, at 0.5%, we doubt the dividend can shed much light on the share price. Shenzhen JPT Opto-Electronics' revenue is actually up 20% over the last year. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We know that Shenzhen JPT Opto-Electronics has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Shenzhen JPT Opto-Electronics will earn in the future (free profit forecasts).

A Different Perspective

Shenzhen JPT Opto-Electronics shareholders are down 13% for the year (even including dividends), even worse than the market loss of 9.6%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 61%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Shenzhen JPT Opto-Electronics better, we need to consider many other factors. For example, we've discovered 3 warning signs for Shenzhen JPT Opto-Electronics (2 are potentially serious!) 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.