One of the frustrations of investing is when a stock goes down. But it can difficult to make money in a declining market. The Tianjin LVYIN Landscape and Ecology Construction Co., Ltd (SZSE:002887) is down 30% over three years, but the total shareholder return is -24% once you include the dividend. And that total return actually beats the market decline of 25%. And the share price decline continued over the last week, dropping some 14%.

If the past week is anything to go by, investor sentiment for Tianjin LVYIN Landscape and Ecology Construction isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Tianjin LVYIN Landscape and Ecology Construction

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 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).

Tianjin LVYIN Landscape and Ecology Construction saw its EPS decline at a compound rate of 33% per year, over the last three years. In comparison the 11% compound annual share price decline isn't as bad as the EPS drop-off. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in.

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

This free interactive report on Tianjin LVYIN Landscape and Ecology Construction's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Tianjin LVYIN Landscape and Ecology Construction the TSR over the last 3 years was -24%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Although it hurts that Tianjin LVYIN Landscape and Ecology Construction returned a loss of 8.0% in the last twelve months, the broader market was actually worse, returning a loss of 17%. Given the total loss of 1.7% per year over five years, it seems returns have deteriorated in the last twelve months. While some investors do well specializing in buying companies that are struggling (but nonetheless undervalued), don't forget that Buffett said that 'turnarounds seldom turn'. 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. Even so, be aware that Tianjin LVYIN Landscape and Ecology Construction is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

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.