While it may not be enough for some shareholders, we think it is good to see the Sunshine Global Circuits Co.,Ltd. (SZSE:300739) share price up 15% in a single quarter. But that cannot eclipse the less-than-impressive returns over the last three years. In fact, the share price is down 15% in the last three years, falling well short of the market return.

While the last three years has been tough for Sunshine Global CircuitsLtd shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

See our latest analysis for Sunshine Global CircuitsLtd

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

During the three years that the share price fell, Sunshine Global CircuitsLtd's earnings per share (EPS) dropped by 1.7% each year. The share price decline of 5% is actually steeper than the EPS slippage. So it seems the market was too confident about the business, in the past.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

This free interactive report on Sunshine Global CircuitsLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Sunshine Global CircuitsLtd's TSR for the last 3 years was -10%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We can sympathize with Sunshine Global CircuitsLtd about their 1.0% loss for the year ( including dividends), but the silver lining is that the broader market return was worse, at around -6.6%. Furthermore, the stock lost shareholders 3% per year over three years, so the one-year return was better in a relative sense. It could well be that the business has begun to stabilize, though the recent returns are hardly impressive. 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. Even so, be aware that Sunshine Global CircuitsLtd is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

But note: Sunshine Global CircuitsLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.