It hasn't been the best quarter for Shandong Sino-Agri United Biotechnology Co.,Ltd (SZSE:003042) shareholders, since the share price has fallen 12% in that time. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 42% in that time.

The past week has proven to be lucrative for Shandong Sino-Agri United BiotechnologyLtd investors, so let's see if fundamentals drove the company's one-year performance.

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. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year Shandong Sino-Agri United BiotechnologyLtd grew its earnings per share (EPS) by 41%. The similarity between the EPS growth and the 42% share price gain really stands out. So this implies that investor expectations of the company have remained pretty steady. We don't think its coincidental that the share price is growing at a similar rate to the earnings per share.

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

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 boasts a total shareholder return of 43% for the last year (that includes the dividends) . Unfortunately the share price is down 12% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Shandong Sino-Agri United BiotechnologyLtd (of which 1 is a bit concerning!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese 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.