Sichuan Dawn Precision TechnologyLtd (SZSE:300780 investor five-year losses grow to 65% as the stock sheds CN¥290m this past week

Statistically speaking, long term investing is a profitable endeavour. But no-one is immune from buying too high. To wit, the Sichuan Dawn Precision Technology Co.,Ltd. (SZSE:300780) share price managed to fall 66% over five long years. That is extremely sub-optimal, to say the least. Furthermore, it's down 43% in about a quarter. That's not much fun for holders.

After losing 14% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

See our latest analysis for Sichuan Dawn Precision TechnologyLtd

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 five years Sichuan Dawn Precision TechnologyLtd's earnings per share dropped significantly, falling to a loss, with the share price also lower. 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 we would generally expect a lower price, given the situation.

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

Dive deeper into Sichuan Dawn Precision TechnologyLtd's key metrics by checking this interactive graph of Sichuan Dawn Precision TechnologyLtd's earnings, revenue and cash flow.

A Different Perspective

While it's never nice to take a loss, Sichuan Dawn Precision TechnologyLtd shareholders can take comfort that , including dividends,their trailing twelve month loss of 5.8% wasn't as bad as the market loss of around 10%. Of far more concern is the 10% p.a. loss served to shareholders over the last five years. This sort of share price action isn't particularly encouraging, but at least the losses are slowing. It's always interesting to track share price performance over the longer term. But to understand Sichuan Dawn Precision TechnologyLtd better, we need to consider many other factors. For example, we've discovered 4 warning signs for Sichuan Dawn Precision TechnologyLtd (2 are a bit concerning!) that you should be aware of before investing here.

But note: Sichuan Dawn Precision TechnologyLtd 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.