Guangdong Silver Age Sci & TechLtd (SZSE:300221) earnings and shareholder returns have been trending downwards for the last five years, but the stock pops 23% this past week

Guangdong Silver Age Sci & Tech Co.,Ltd. (SZSE:300221) shareholders will doubtless be very grateful to see the share price up 45% in the last month. But if you look at the last five years the returns have not been good. In fact, the share price is down 26%, which falls well short of the return you could get by buying an index fund.

The recent uptick of 23% could be a positive sign of things to come, so let's take a look at historical fundamentals.

See our latest analysis for Guangdong Silver Age Sci & TechLtd

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During five years of share price growth, Guangdong Silver Age Sci & TechLtd moved from a loss to profitability. 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.

The revenue decline of 0.7% isn't too bad. But if the market expected durable top line growth, then that could explain the share price weakness.

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

Take a more thorough look at Guangdong Silver Age Sci & TechLtd's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Guangdong Silver Age Sci & TechLtd shareholders have received a total shareholder return of 16% over one year. Notably the five-year annualised TSR loss of 5% 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Guangdong Silver Age Sci & TechLtd has 1 warning sign we think you should be aware of.

For those who like to find winning investments this free list of growing 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.