Further weakness as Baiyang Investment Group (SZSE:002696) drops 10% this week, taking one-year losses to 18%

Baiyang Investment Group, Inc. (SZSE:002696) shareholders will doubtless be very grateful to see the share price up 39% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 18% in the last year, significantly under-performing the market.

Since Baiyang Investment Group has shed CN¥215m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

View our latest analysis for Baiyang Investment Group

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

Baiyang Investment Group fell to a loss making position during the year. Some investors no doubt dumped the stock as a result. However, there may be an opportunity for investors if the company can recover.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into Baiyang Investment Group's key metrics by checking this interactive graph of Baiyang Investment Group's earnings, revenue and cash flow.

A Different Perspective

Investors in Baiyang Investment Group had a tough year, with a total loss of 18%, against a market gain of about 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. 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. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

But note: Baiyang Investment Group 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.