JH Educational Technology INC. (HKG:1935) has rebounded strongly over the last week, with the share price soaring 60%. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 34% in the last year, well below the market return.

While the stock has risen 60% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

Check out our latest analysis for JH Educational Technology

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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).

Even though the JH Educational Technology share price is down over the year, its EPS actually improved. It's quite possible that growth expectations may have been unreasonable in the past.

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.

JH Educational Technology managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

If you are thinking of buying or selling JH Educational Technology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

JH Educational Technology shareholders are down 34% for the year, falling short of the market return. The market shed around 23%, no doubt weighing on the stock price. Investors are up over three years, booking 1.5% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. It's always interesting to track share price performance over the longer term. But to understand JH Educational Technology better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for JH Educational Technology you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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.