While it may not be enough for some shareholders, we think it is good to see the GRIPM Advanced Materials Co., Ltd. (SHSE:688456) share price up 14% in a single quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 14% in a year, falling short of the returns you could get by investing in an index fund.

After losing 15% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

Check out our latest analysis for GRIPM Advanced Materials

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 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.

Unhappily, GRIPM Advanced Materials had to report a 51% decline in EPS over the last year. The share price fall of 14% isn't as bad as the reduction in earnings per share. It may have been that the weak EPS was not as bad as some had feared.

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

This free interactive report on GRIPM Advanced Materials' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

GRIPM Advanced Materials shareholders are down 13% for the year (even including dividends), even worse than the market loss of 11%. 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 14% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with GRIPM Advanced Materials (including 1 which is a bit unpleasant) .

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 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.