Shareholders in HY Energy GroupLtd (SHSE:600387) have lost 62%, as stock drops 13% this past week

We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. For example the HY Energy Group Co.,Ltd (SHSE:600387) share price dropped 63% over five years. That's an unpleasant experience for long term holders. And it's not just long term holders hurting, because the stock is down 52% in the last year. On top of that, the share price is down 13% in the last week.

If the past week is anything to go by, investor sentiment for HY Energy GroupLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

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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.

In the last half decade HY Energy GroupLtd saw its share price fall as its EPS declined below zero. At present it's hard to make valid comparisons between EPS and the share price. However, we can say we'd expect to see a falling share price in this scenario.

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

This free interactive report on HY Energy GroupLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Investors in HY Energy GroupLtd had a tough year, with a total loss of 52%, against a market gain of about 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand HY Energy GroupLtd better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for HY Energy GroupLtd you should be aware of.

Of course HY Energy GroupLtd 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.