Ideally, your overall portfolio should beat the market average. But in any portfolio, there will be mixed results between individual stocks. At this point some shareholders may be questioning their investment in Suzhou Xingye Materials Technology Co.,Ltd. (SHSE:603928), since the last five years saw the share price fall 15%. On top of that, the share price is down 16% in the last week.
After losing 16% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
View our latest analysis for Suzhou Xingye Materials TechnologyLtd
There is no denying that markets are sometimes efficient, but prices do not always reflect 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 five years over which the share price declined, Suzhou Xingye Materials TechnologyLtd's earnings per share (EPS) dropped by 9.4% each year. This fall in the EPS is worse than the 3% compound annual share price fall. So investors might expect EPS to bounce back -- or they may have previously foreseen the EPS decline.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Dive deeper into Suzhou Xingye Materials TechnologyLtd's key metrics by checking this interactive graph of Suzhou Xingye Materials TechnologyLtd's earnings, revenue and cash flow.
What About The Total Shareholder Return (TSR)?
Investors should note that there's a difference between Suzhou Xingye Materials TechnologyLtd's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Suzhou Xingye Materials TechnologyLtd shareholders, and that cash payout explains why its total shareholder loss of 3.6%, over the last 5 years, isn't as bad as the share price return.
A Different Perspective
While it's never nice to take a loss, Suzhou Xingye Materials TechnologyLtd shareholders can take comfort that their trailing twelve month loss of 5.0% wasn't as bad as the market loss of around 21%. Given the total loss of 0.7% 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. To that end, you should be aware of the 1 warning sign we've spotted with Suzhou Xingye Materials TechnologyLtd .
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.