Kaili Catalyst & New Materials Co.,Ltd. (SHSE:688269) shareholders should be happy to see the share price up 20% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. After all, the share price is down 22% in the last year, significantly under-performing the market.

While the stock has risen 6.3% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for Kaili Catalyst & 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. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Even though the Kaili Catalyst & New MaterialsLtd share price is down over the year, its EPS actually improved. 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 easy to justify a look at some other metrics.

Given the yield is quite low, at 1.8%, we doubt the dividend can shed much light on the share price. Kaili Catalyst & New MaterialsLtd's revenue is actually up 30% 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.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It is of course excellent to see how Kaili Catalyst & New MaterialsLtd has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Kaili Catalyst & New MaterialsLtd's financial health with this free report on its balance sheet.

A Different Perspective

We doubt Kaili Catalyst & New MaterialsLtd shareholders are happy with the loss of 20% over twelve months (even including dividends). That falls short of the market, which lost 6.6%. 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 20% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Kaili Catalyst & New MaterialsLtd better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Kaili Catalyst & New MaterialsLtd .

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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.