Titan Wind Energy (Suzhou)Ltd (SZSE:002531) stock falls 4.1% in past week as three-year earnings and shareholder returns continue downward trend

While not a mind-blowing move, it is good to see that the Titan Wind Energy (Suzhou) Co.,Ltd (SZSE:002531) share price has gained 25% in the last three months. Meanwhile over the last three years the stock has dropped hard. Indeed, the share price is down a tragic 55% in the last three years. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.

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

Check out our latest analysis for Titan Wind Energy (Suzhou)Ltd

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.

During the three years that the share price fell, Titan Wind Energy (Suzhou)Ltd's earnings per share (EPS) dropped by 34% each year. In comparison the 23% compound annual share price decline isn't as bad as the EPS drop-off. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in.

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

Dive deeper into Titan Wind Energy (Suzhou)Ltd's key metrics by checking this interactive graph of Titan Wind Energy (Suzhou)Ltd's earnings, revenue and cash flow.

A Different Perspective

Titan Wind Energy (Suzhou)Ltd shareholders are down 24% for the year (even including dividends), but the market itself is up 14%. 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 8%, 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. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Titan Wind Energy (Suzhou)Ltd (of which 1 is a bit concerning!) you should know about.

Of course Titan Wind Energy (Suzhou)Ltd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.