Shenzhen New Land Tool Planning & Architectural Design (SZSE:300778 shareholders incur further losses as stock declines 10% this week, taking five-year losses to 51%

Generally speaking long term investing is the way to go. But no-one is immune from buying too high. For example, after five long years the Shenzhen New Land Tool Planning & Architectural Design Co., Ltd. (SZSE:300778) share price is a whole 54% lower. We certainly feel for shareholders who bought near the top. We also note that the stock has performed poorly over the last year, with the share price down 52%. Even worse, it's down 22% in about a month, which isn't fun at all.

After losing 10% 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 Shenzhen New Land Tool Planning & Architectural Design

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

In the last half decade Shenzhen New Land Tool Planning & Architectural Design saw its share price fall as its EPS declined below zero. This was, in part, due to extraordinary items impacting earnings. At present it's hard to make valid comparisons between EPS and the share price. But we would generally expect a lower price, given the situation.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Shenzhen New Land Tool Planning & Architectural Design's key metrics by checking this interactive graph of Shenzhen New Land Tool Planning & Architectural Design's earnings, revenue and cash flow.

What About The Total Shareholder Return (TSR)?

We've already covered Shenzhen New Land Tool Planning & Architectural Design's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Shenzhen New Land Tool Planning & Architectural Design shareholders, and that cash payout explains why its total shareholder loss of 51%, over the last 5 years, isn't as bad as the share price return.

A Different Perspective

We regret to report that Shenzhen New Land Tool Planning & Architectural Design shareholders are down 52% for the year. Unfortunately, that's worse than the broader market decline of 9.6%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 9% 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. It's always interesting to track share price performance over the longer term. But to understand Shenzhen New Land Tool Planning & Architectural Design better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Shenzhen New Land Tool Planning & Architectural Design you should be aware of, and 2 of them are significant.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.