Even after rising 11% this past week, Jiangsu Sanfame Polyester MaterialLtd (SHSE:600370) shareholders are still down 29% over the past three years

It's nice to see the Jiangsu Sanfame Polyester Material Co.,Ltd. (SHSE:600370) share price up 11% in a week. But that cannot eclipse the less-than-impressive returns over the last three years. In fact, the share price is down 36% in the last three years, falling well short of the market return.

Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline.

Check out our latest analysis for Jiangsu Sanfame Polyester MaterialLtd

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.

Jiangsu Sanfame Polyester MaterialLtd saw its share price decline over the three years in which its EPS also dropped, falling to a loss. 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 it's safe to say we'd generally expect the share price to be lower as a result!

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Dive deeper into Jiangsu Sanfame Polyester MaterialLtd's key metrics by checking this interactive graph of Jiangsu Sanfame Polyester MaterialLtd's earnings, revenue and cash flow.

What About The Total Shareholder Return (TSR)?

We've already covered Jiangsu Sanfame Polyester MaterialLtd's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Jiangsu Sanfame Polyester MaterialLtd shareholders, and that cash payout explains why its total shareholder loss of 29%, over the last 3 years, isn't as bad as the share price return.

A Different Perspective

Jiangsu Sanfame Polyester MaterialLtd provided a TSR of 5.2% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 4% per year, over five years. So this might be a sign the business has turned its fortunes around. 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. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Jiangsu Sanfame Polyester MaterialLtd you should know about.

Of course Jiangsu Sanfame Polyester MaterialLtd 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.