Guangdong Rongtai IndustryLtd (SHSE:600589) shareholders are still up 82% over 3 years despite pulling back 6.4% in the past week

It hasn't been the best quarter for Guangdong Rongtai Industry Co.,Ltd (SHSE:600589) shareholders, since the share price has fallen 19% in that time. But over three years, the returns would have left most investors smiling In the last three years the share price is up, 82%: better than the market.

Since the long term performance has been good but there's been a recent pullback of 6.4%, let's check if the fundamentals match the share price.

Check out our latest analysis for Guangdong Rongtai IndustryLtd

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 three years of share price growth, Guangdong Rongtai IndustryLtd moved from a loss to profitability. 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).

It might be well worthwhile taking a look at our free report on Guangdong Rongtai IndustryLtd's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Guangdong Rongtai IndustryLtd shareholders have received a total shareholder return of 30% over the last year. Notably the five-year annualised TSR loss of 4% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Guangdong Rongtai IndustryLtd better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Guangdong Rongtai IndustryLtd .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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