One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowess, you can make superior returns. For example, the Harbin Jiuzhou Group Co.,Ltd. (SZSE:300040) share price is up 88% in the last three years, clearly besting the market return of around 30% (not including dividends).

Since it's been a strong week for Harbin Jiuzhou GroupLtd shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Harbin Jiuzhou GroupLtd

There is no denying that markets are sometimes efficient, but prices do not always reflect 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).

During three years of share price growth, Harbin Jiuzhou GroupLtd achieved compound earnings per share growth of 49% per year. This EPS growth is higher than the 23% average annual increase in the share price. Therefore, it seems the market has moderated its expectations for growth, somewhat.

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

We know that Harbin Jiuzhou GroupLtd has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Harbin Jiuzhou GroupLtd's financial health with this free report on its balance sheet.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Harbin Jiuzhou GroupLtd, it has a TSR of 91% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

While it's never nice to take a loss, Harbin Jiuzhou GroupLtd shareholders can take comfort that , including dividends,their trailing twelve month loss of 3.1% wasn't as bad as the market loss of around 11%. Of course, the long term returns are far more important and the good news is that over five years, the stock has returned 4% for each year. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. It's always interesting to track share price performance over the longer term. But to understand Harbin Jiuzhou GroupLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Harbin Jiuzhou GroupLtd you should be aware of.

We will like Harbin Jiuzhou GroupLtd better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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.