SDIC Zhonglu Fruit JuiceLtd (SHSE:600962) shareholder returns have been decent, earning 81% in 3 years

By buying an index fund, you can roughly match the market return with ease. But if you pick the right individual stocks, you could make more than that. For example, SDIC Zhonglu Fruit Juice Co.,Ltd. (SHSE:600962) shareholders have seen the share price rise 81% over three years, well in excess of the market decline (30%, not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 8.7%.

The past week has proven to be lucrative for SDIC Zhonglu Fruit JuiceLtd investors, so let's see if fundamentals drove the company's three-year performance.

See our latest analysis for SDIC Zhonglu Fruit JuiceLtd

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

SDIC Zhonglu Fruit JuiceLtd became profitable within the last three years. So we would expect a higher share price over the period.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

It's good to see that SDIC Zhonglu Fruit JuiceLtd has rewarded shareholders with a total shareholder return of 8.7% in the last twelve months. That gain is better than the annual TSR over five years, which is 8%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand SDIC Zhonglu Fruit JuiceLtd better, we need to consider many other factors. For instance, we've identified 1 warning sign for SDIC Zhonglu Fruit JuiceLtd that you should be aware of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com