Anhui Guofeng New Materials (SZSE:000859) shareholders are up 20% this past week, but still in the red over the last three years

Anhui Guofeng New Materials Co., Ltd. (SZSE:000859) shareholders will doubtless be very grateful to see the share price up 50% in the last month. Unfortunately the return over three years isn't so good. Specifically, the stock price is down 21% whereas the market is down , having returned (-18%).

While the stock has risen 20% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

View our latest analysis for Anhui Guofeng New Materials

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Anhui Guofeng New Materials saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Due to the loss, it's not easy to use EPS as a reliable guide to the business. However, we can say we'd expect to see a falling share price in this scenario.

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

Dive deeper into Anhui Guofeng New Materials' key metrics by checking this interactive graph of Anhui Guofeng New Materials's earnings, revenue and cash flow.

A Different Perspective

Anhui Guofeng New Materials shareholders are down 9.4% for the year, but the market itself is up 1.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 2% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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. Even so, be aware that Anhui Guofeng New Materials is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

Of course Anhui Guofeng New Materials 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.