Further weakness as CSSC Science& Technology (SHSE:600072) drops 3.2% this week, taking one-year losses to 28%

While it may not be enough for some shareholders, we think it is good to see the CSSC Science& Technology Co., Ltd (SHSE:600072) share price up 17% in a single quarter. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 28% in the last year, well below the market return.

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

See our latest analysis for CSSC Science& Technology

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. 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.

CSSC Science& Technology fell to a loss making position during the year. Some investors no doubt dumped the stock as a result. Of course, if the company can turn the situation around, investors will likely profit.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It might be well worthwhile taking a look at our free report on CSSC Science& Technology's earnings, revenue and cash flow.

A Different Perspective

Investors in CSSC Science& Technology had a tough year, with a total loss of 28% (including dividends), against a market gain of about 6.8%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 0.2%, each year, over five years. 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 CSSC Science& Technology better, we need to consider many other factors. For example, we've discovered 1 warning sign for CSSC Science& Technology that you should be aware of before investing here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.