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Nantong Xingqiu GraphiteLtd (SHSE:688633) Shareholders Have Lost 26% Over 1 Year, Earnings Decline Likely the Culprit

Simply Wall St ·  Aug 24, 2022 19:30

Nantong Xingqiu Graphite Co.,Ltd. (SHSE:688633) shareholders will doubtless be very grateful to see the share price up 33% in the last quarter. But in truth the last year hasn't been good for the share price. In fact, the price has declined 27% in a year, falling short of the returns you could get by investing in an index fund.

After losing 12% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Nantong Xingqiu GraphiteLtd

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...' 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.

Unhappily, Nantong Xingqiu GraphiteLtd had to report a 28% decline in EPS over the last year. This change in EPS is remarkably close to the 27% decrease in the share price. Therefore one could posit that the market has not become more concerned about the company, despite the lower EPS. Rather, the share price is remains a similar multiple of the EPS, suggesting the outlook remains the same.

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

earnings-per-share-growthSHSE:688633 Earnings Per Share Growth August 24th 2022

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

A Different Perspective

We doubt Nantong Xingqiu GraphiteLtd shareholders are happy with the loss of 26% over twelve months (even including dividends). That falls short of the market, which lost 8.5%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 33%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Nantong Xingqiu GraphiteLtd better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Nantong Xingqiu GraphiteLtd .

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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.

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