Investors five-year losses continue as Baiyin Nonferrous Group (SHSE:601212) dips a further 4.2% this week, earnings continue to decline

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long term Baiyin Nonferrous Group Co., Ltd. (SHSE:601212) shareholders for doubting their decision to hold, with the stock down 36% over a half decade. Even worse, it's down 10% in about a month, which isn't fun at all. But this could be related to poor market conditions -- stocks are down 6.3% in the same time.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

See our latest analysis for Baiyin Nonferrous 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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Baiyin Nonferrous Group became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics might give us a better handle on how its value is changing over time.

We don't think that the 0.1% is big factor in the share price, since it's quite small, as dividends go. In contrast to the share price, revenue has actually increased by 9.6% a year in the five year period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Baiyin Nonferrous Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Baiyin Nonferrous Group has rewarded shareholders with a total shareholder return of 3.0% in the last twelve months. And that does include the dividend. That certainly beats the loss of about 6% per year over the last half decade. 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 Baiyin Nonferrous Group better, we need to consider many other factors. Even so, be aware that Baiyin Nonferrous Group is showing 2 warning signs in our investment analysis , you should know about...

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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