Yunding TechnologyLtd (SZSE:000409) delivers shareholders impressive 16% CAGR over 5 years, surging 7.6% in the last week alone

When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. One great example is Yunding Technology Co.,Ltd. (SZSE:000409) which saw its share price drive 107% higher over five years. And in the last month, the share price has gained 22%.

Since it's been a strong week for Yunding TechnologyLtd shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Yunding TechnologyLtd

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 the last half decade, Yunding TechnologyLtd became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. Indeed, the Yunding TechnologyLtd share price has gained 32% in three years. In the same period, EPS is up 11% per year. This EPS growth is reasonably close to the 10% average annual increase in the share price (over three years, again). That suggests that the market sentiment around the company hasn't changed much over that time. Arguably the share price is reflecting the earnings per share.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

It's good to see that Yunding TechnologyLtd has rewarded shareholders with a total shareholder return of 49% in the last twelve months. That's better than the annualised return of 16% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Is Yunding TechnologyLtd cheap compared to other companies? These 3 valuation measures might help you decide.

But note: Yunding TechnologyLtd 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.