While shareholders of Chongqing Mas Sci.&Tech.Co.Ltd (SZSE:300275) are in the black over 5 years, those who bought a week ago aren't so fortunate

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Chongqing Mas Sci.&Tech.Co.,Ltd. (SZSE:300275) which saw its share price drive 115% higher over five years. On top of that, the share price is up 47% in about a quarter. But this could be related to the strong market, which is up 24% in the last three months.

Since the long term performance has been good but there's been a recent pullback of 10.0%, let's check if the fundamentals match the share price.

Check out our latest analysis for Chongqing Mas Sci.&Tech.Co.Ltd

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 last half decade, Chongqing Mas Sci.&Tech.Co.Ltd became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. Indeed, the Chongqing Mas Sci.&Tech.Co.Ltd share price has gained 109% in three years. In the same period, EPS is up 24% per year. This EPS growth is reasonably close to the 28% average annual increase in the share price (over three years, again). So you could reasonably conclude that investor sentiment towards the stock has remained pretty steady, over time. Rather, the share price has approximately tracked EPS growth.

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

We know that Chongqing Mas Sci.&Tech.Co.Ltd has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Chongqing Mas Sci.&Tech.Co.Ltd, it has a TSR of 117% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that Chongqing Mas Sci.&Tech.Co.Ltd has rewarded shareholders with a total shareholder return of 17% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 17%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Chongqing Mas Sci.&Tech.Co.Ltd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Chongqing Mas Sci.&Tech.Co.Ltd you should know about.

But note: Chongqing Mas Sci.&Tech.Co.Ltd 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.