Anhui Xinbo Aluminum Co., Ltd. (SZSE:003038) shareholders might be concerned after seeing the share price drop 15% in the last quarter. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 98%.

In light of the stock dropping 6.1% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

Check out our latest analysis for Anhui Xinbo Aluminum

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Anhui Xinbo Aluminum was able to grow EPS by 8.8% in the last twelve months. This EPS growth is significantly lower than the 98% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago. The fairly generous P/E ratio of 56.12 also points to this optimism.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

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

A Different Perspective

Anhui Xinbo Aluminum shareholders should be happy with the total gain of 99% over the last twelve months, including dividends. We regret to report that the share price is down 15% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. It's always interesting to track share price performance over the longer term. But to understand Anhui Xinbo Aluminum better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Anhui Xinbo Aluminum you should be aware of, and 2 of them are a bit unpleasant.

We will like Anhui Xinbo Aluminum 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.