The past three years for Beijing Easpring Material TechnologyLTD (SZSE:300073) investors has not been profitable

The truth is that if you invest for long enough, you're going to end up with some losing stocks. But the long term shareholders of Beijing Easpring Material Technology CO.,LTD. (SZSE:300073) have had an unfortunate run in the last three years. Unfortunately, they have held through a 56% decline in the share price in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 34% lower in that time. Shareholders have had an even rougher run lately, with the share price down 36% in the last 90 days.

Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.

View our latest analysis for Beijing Easpring Material TechnologyLTD

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

During the unfortunate three years of share price decline, Beijing Easpring Material TechnologyLTD actually saw its earnings per share (EPS) improve by 41% per year. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Alternatively, growth expectations may have been unreasonable in the past.

Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

Revenue is actually up 35% over the three years, so the share price drop doesn't seem to hinge on revenue, either. This analysis is just perfunctory, but it might be worth researching Beijing Easpring Material TechnologyLTD more closely, as sometimes stocks fall unfairly. This could present an opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Beijing Easpring Material TechnologyLTD is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Beijing Easpring Material TechnologyLTD will earn in the future (free analyst consensus estimates)

A Different Perspective

We regret to report that Beijing Easpring Material TechnologyLTD shareholders are down 33% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 17%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 6% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Beijing Easpring Material TechnologyLTD better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Beijing Easpring Material TechnologyLTD (of which 1 is concerning!) you should know about.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

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.

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