Shareholders in Beijing Tianyishangjia New Material (SHSE:688033) have lost 80%, as stock drops 10.0% this past week

Beijing Tianyishangjia New Material Corp., Ltd. (SHSE:688033) shareholders will doubtless be very grateful to see the share price up 35% in the last quarter. But the last three years have seen a terrible decline. To wit, the share price sky-dived 81% in that time. So it sure is nice to see a bit of an improvement. Only time will tell if the company can sustain the turnaround. While a drop like that is definitely a body blow, money isn't as important as health and happiness.

With the stock having lost 10.0% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for Beijing Tianyishangjia New Material

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Over the three years that the share price declined, Beijing Tianyishangjia New Material's earnings per share (EPS) dropped significantly, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But it's safe to say we'd generally expect the share price to be lower as a result!

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

Dive deeper into Beijing Tianyishangjia New Material's key metrics by checking this interactive graph of Beijing Tianyishangjia New Material's earnings, revenue and cash flow.

A Different Perspective

Beijing Tianyishangjia New Material shareholders are down 59% for the year (even including dividends), but the market itself is up 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 12% per year over five years. 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. You could get a better understanding of Beijing Tianyishangjia New Material's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

But note: Beijing Tianyishangjia New Material 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 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.