The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do both better or worse than that. That downside risk was realized by SPIC Industry-Finance Holdings Co., Ltd. (SZSE:000958) shareholders over the last year, as the share price declined 11%. That's well below the market decline of 3.7%. On the bright side, the stock is actually up 2.6% in the last three years.

After losing 5.9% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

See our latest analysis for SPIC Industry-Finance Holdings

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.

Unhappily, SPIC Industry-Finance Holdings had to report a 20% decline in EPS over the last year. This fall in the EPS is significantly worse than the 11% the share price fall. It may have been that the weak EPS was not as bad as some had feared.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into SPIC Industry-Finance Holdings' key metrics by checking this interactive graph of SPIC Industry-Finance Holdings's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 3.7% in the twelve months, SPIC Industry-Finance Holdings shareholders did even worse, losing 9.6% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with SPIC Industry-Finance Holdings , and understanding them should be part of your investment process.

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 Chinese 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.