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Suzhou UIGreen Micro&Nano TechnologiesLtd's (SHSE:688661 One-year Decrease in Earnings Delivers Investors With a 23% Loss

Simply Wall St ·  Aug 25, 2022 20:35

It is doubtless a positive to see that the Suzhou UIGreen Micro&Nano Technologies Co.,Ltd (SHSE:688661) share price has gained some 45% in the last three months. But that doesn't change the fact that the returns over the last year have been less than pleasing. The cold reality is that the stock has dropped 24% in one year, under-performing the market.

With the stock having lost 18% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for Suzhou UIGreen Micro&Nano TechnologiesLtd

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.

Unhappily, Suzhou UIGreen Micro&Nano TechnologiesLtd had to report a 26% decline in EPS over the last year. We note that the 24% share price drop is very close to the EPS drop. Given the lower EPS we might have expected investors to lose confidence in the stock, but that doesn't seemed to have happened. Rather, the share price is remains a similar multiple of the EPS, suggesting the outlook remains the same.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growthSHSE:688661 Earnings Per Share Growth August 26th 2022

This free interactive report on Suzhou UIGreen Micro&Nano TechnologiesLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Suzhou UIGreen Micro&Nano TechnologiesLtd shareholders are down 23% for the year (even including dividends), even worse than the market loss of 11%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Putting aside the last twelve months, it's good to see the share price has rebounded by 45%, 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. 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 Suzhou UIGreen Micro&Nano TechnologiesLtd (including 1 which is concerning) .

Of course Suzhou UIGreen Micro&Nano TechnologiesLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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