The 12% return this week takes Jilin Quanyangquan's (SHSE:600189) shareholders five-year gains to 100%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Jilin Quanyangquan Co., Ltd. (SHSE:600189) share price has soared 100% in the last half decade. Most would be very happy with that. Better yet, the share price has risen 12% in the last week.

Since the stock has added CN¥572m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for Jilin Quanyangquan

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.

During five years of share price growth, Jilin Quanyangquan achieved compound earnings per share (EPS) growth of 33% per year. The EPS growth is more impressive than the yearly share price gain of 15% over the same period. So one could conclude that the broader market has become more cautious towards the stock.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Jilin Quanyangquan's earnings, revenue and cash flow.

A Different Perspective

While it's never nice to take a loss, Jilin Quanyangquan shareholders can take comfort that their trailing twelve month loss of 16% wasn't as bad as the market loss of around 19%. Of course, the long term returns are far more important and the good news is that over five years, the stock has returned 15% for each year. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

Of course Jilin Quanyangquan 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.