Shareholders in Jiang Su Yida ChemicalLtd (SZSE:300721) have lost 31%, as stock drops 12% this past week

While it may not be enough for some shareholders, we think it is good to see the Jiang Su Yida Chemical Co.,Ltd (SZSE:300721) share price up 24% in a single quarter. That doesn't really compensate for the lacklustre three-year returns. To be specific, the share price is a full 31% lower, while the market is down , with a return of (-27%)..

If the past week is anything to go by, investor sentiment for Jiang Su Yida ChemicalLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for Jiang Su Yida ChemicalLtd

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 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.

Over the three years that the share price declined, Jiang Su Yida ChemicalLtd's earnings per share (EPS) dropped significantly, 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.

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

Dive deeper into Jiang Su Yida ChemicalLtd's key metrics by checking this interactive graph of Jiang Su Yida ChemicalLtd's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 16% in the twelve months, Jiang Su Yida ChemicalLtd shareholders did even worse, losing 18% (even including dividends). Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 6% 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. It's always interesting to track share price performance over the longer term. But to understand Jiang Su Yida ChemicalLtd better, we need to consider many other factors. Even so, be aware that Jiang Su Yida ChemicalLtd is showing 3 warning signs in our investment analysis , you should know about...

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.

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.

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