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Jiangxi Hungpai New Material (SHSE:605366) Shareholders YoY Returns Are Lagging the Company's 258% One-year Earnings Growth

Simply Wall St ·  Nov 28, 2022 21:16

It hasn't been the best quarter for Jiangxi Hungpai New Material Co., Ltd. (SHSE:605366) shareholders, since the share price has fallen 13% in that time. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 59%.

Since the long term performance has been good but there's been a recent pullback of 4.6%, let's check if the fundamentals match the share price.

See our latest analysis for Jiangxi Hungpai New Material

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Jiangxi Hungpai New Material was able to grow EPS by 258% in the last twelve months. It's fair to say that the share price gain of 59% did not keep pace with the EPS growth. So it seems like the market has cooled on Jiangxi Hungpai New Material, despite the growth. Interesting.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growthSHSE:605366 Earnings Per Share Growth November 29th 2022

We know that Jiangxi Hungpai New Material has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Jiangxi Hungpai New Material will grow revenue in the future.

A Different Perspective

It's nice to see that Jiangxi Hungpai New Material shareholders have gained 60% over the last year, including dividends. Unfortunately the share price is down 13% over the last quarter. Shorter term share price moves often don't signify much about the business itself. It's always interesting to track share price performance over the longer term. But to understand Jiangxi Hungpai New Material better, we need to consider many other factors. Even so, be aware that Jiangxi Hungpai New Material is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

We will like Jiangxi Hungpai New Material 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.

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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