The three-year shareholder returns and company earnings persist lower as Winning Health Technology Group (SZSE:300253) stock falls a further 4.3% in past week

Winning Health Technology Group Co., Ltd. (SZSE:300253) shareholders will doubtless be very grateful to see the share price up 36% in the last quarter. But that is small recompense for the exasperating returns over three years. Indeed, the share price is down a tragic 51% in the last three years. So it's good to see it climbing back up. The rise has some hopeful, but turnarounds are often precarious.

Since Winning Health Technology Group has shed CN¥739m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for Winning Health Technology Group

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.

During the three years that the share price fell, Winning Health Technology Group's earnings per share (EPS) dropped by 13% each year. This reduction in EPS is slower than the 21% annual reduction in the share price. So it seems the market was too confident about the business, in the past.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that Winning Health Technology Group has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.

A Different Perspective

Winning Health Technology Group shareholders gained a total return of 7.3% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 6% per year, over five years. It could well be that the business is stabilizing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Winning Health Technology Group that you should be aware of.

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.