Shandong Sino-Agri United Biotechnology Co.,Ltd (SZSE:003042) shareholders might be concerned after seeing the share price drop 19% in the last week. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 56% in that time.

While the stock has fallen 19% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

See our latest analysis for Shandong Sino-Agri United BiotechnologyLtd

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 last year Shandong Sino-Agri United BiotechnologyLtd grew its earnings per share (EPS) by 53%. We note that the earnings per share growth isn't far from the share price growth (of 56%). This makes us think the market hasn't really changed its sentiment around the company, in the last year. It makes intuitive sense that the share price and EPS would grow at similar rates.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

Shandong Sino-Agri United BiotechnologyLtd shareholders should be happy with the total gain of 58% over the last twelve months, including dividends. And the share price momentum remains respectable, with a gain of 53% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 3 warning signs for Shandong Sino-Agri United BiotechnologyLtd (2 can't be ignored) that you should be aware of.

We will like Shandong Sino-Agri United BiotechnologyLtd 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.