Zhejiang Sunrise Garment Group Co., Ltd. (SHSE:605138) shareholders should be happy to see the share price up 15% in the last month. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 17% in a year, falling short of the returns you could get by investing in an index fund.
While the stock has risen 10% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
Check out our latest analysis for Zhejiang Sunrise Garment Group
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.
Even though the Zhejiang Sunrise Garment Group share price is down over the year, its EPS actually improved. It could be that the share price was previously over-hyped.
It's surprising to see the share price fall so much, despite the improved EPS. So it's well worth checking out some other metrics, too.
Zhejiang Sunrise Garment Group managed to grow revenue over the last year, which is usually a real positive. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We know that Zhejiang Sunrise Garment Group has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Zhejiang Sunrise Garment Group will earn in the future (free profit forecasts).
A Different Perspective
We doubt Zhejiang Sunrise Garment Group shareholders are happy with the loss of 15% over twelve months (even including dividends). That falls short of the market, which lost 8.0%. 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 12%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Zhejiang Sunrise Garment Group better, we need to consider many other factors. For example, we've discovered 3 warning signs for Zhejiang Sunrise Garment Group (1 is a bit concerning!) that you should be aware of before investing here.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.