201% earnings growth over 1 year has not materialized into gains for Fujitsu General (TSE:6755) shareholders over that period

The nature of investing is that you win some, and you lose some. And unfortunately for Fujitsu General Limited (TSE:6755) shareholders, the stock is a lot lower today than it was a year ago. In that relatively short period, the share price has plunged 54%. We note that it has not been easy for shareholders over three years, either; the share price is down 38% in that time. The falls have accelerated recently, with the share price down 15% in the last three months.

After losing 4.3% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

Check out our latest analysis for Fujitsu General

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 Fujitsu General share price is down over the year, its EPS actually improved. Of course, the situation might betray previous over-optimism about growth.

It's fair to say that the share price does not seem to be reflecting the EPS growth. But we might find some different metrics explain the share price movements better.

On the other hand, we're certainly perturbed by the 4.1% decline in Fujitsu General's revenue. Many investors see falling revenue as a likely precursor to lower earnings, so this could well explain the weak share price.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We know that Fujitsu General 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 Fujitsu General will earn in the future (free profit forecasts).

A Different Perspective

Investors in Fujitsu General had a tough year, with a total loss of 53% (including dividends), against a market gain of about 33%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 4% 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. Is Fujitsu General cheap compared to other companies? These 3 valuation measures might help you decide.

But note: Fujitsu General may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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