The three-year shareholder returns and company earnings persist lower as Nanjing Hanrui CobaltLtd (SZSE:300618) stock falls a further 3.8% in past week

Nanjing Hanrui Cobalt Co.,Ltd. (SZSE:300618) shareholders will doubtless be very grateful to see the share price up 30% in the last quarter. But that is small recompense for the exasperating returns over three years. Tragically, the share price declined 61% in that time. So the improvement may be a real relief to some. While many would remain nervous, there could be further gains if the business can put its best foot forward.

After losing 3.8% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

See our latest analysis for Nanjing Hanrui CobaltLtd

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

Nanjing Hanrui CobaltLtd saw its EPS decline at a compound rate of 30% per year, over the last three years. This fall in EPS isn't far from the rate of share price decline, which was 27% per year. So it seems that investor expectations of the company are staying pretty steady, despite the disappointment. Rather, the share price has approximately tracked EPS growth.

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

We know that Nanjing Hanrui CobaltLtd has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Nanjing Hanrui CobaltLtd will grow revenue in the future.

A Different Perspective

Nanjing Hanrui CobaltLtd shareholders are down 9.2% over twelve months (even including dividends), which isn't far from the market return of -10%. Unfortunately, last year's performance is a deterioration of an already poor long term track record, given the loss of 5% per year over the last five years. It will probably take a substantial improvement in the fundamental performance for the company to reverse this 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. To that end, you should learn about the 2 warning signs we've spotted with Nanjing Hanrui CobaltLtd (including 1 which is potentially serious) .

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.