Investors one-year losses continue as Ningbo Xusheng Group (SHSE:603305) dips a further 4.1% this week, earnings continue to decline

Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Ningbo Xusheng Group Co., Ltd. (SHSE:603305) stock has had a really bad year. The share price is down a hefty 60% in that time. Notably, shareholders had a tough run over the longer term, too, with a drop of 52% in the last three years. 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 Ningbo Xusheng Group isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for Ningbo Xusheng Group

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Unhappily, Ningbo Xusheng Group had to report a 15% decline in EPS over the last year. The share price decline of 60% is actually more than the EPS drop. This suggests the EPS fall has made some shareholders more nervous about the business.

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

Dive deeper into Ningbo Xusheng Group's key metrics by checking this interactive graph of Ningbo Xusheng Group's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 17% in the twelve months, Ningbo Xusheng Group shareholders did even worse, losing 59% (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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 4% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Ningbo Xusheng Group is showing 1 warning sign in our investment analysis , you should know about...

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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.