Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Hoyuan Green Energy Co., Ltd. (SHSE:603185) stock has had a really bad year. The share price has slid 68% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 68% in that time. Furthermore, it's down 31% in about a quarter. That's not much fun for holders.

If the past week is anything to go by, investor sentiment for Hoyuan Green Energy isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

Unhappily, Hoyuan Green Energy had to report a 54% decline in EPS over the last year. The share price decline of 68% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The less favorable sentiment is reflected in its current P/E ratio of 9.80.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Hoyuan Green Energy has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Hoyuan Green Energy stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market lost about 15% in the twelve months, Hoyuan Green Energy shareholders did even worse, losing 67% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 12% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Hoyuan Green Energy better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Hoyuan Green Energy (including 1 which is significant) .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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.