Shareholders in G-bits Network Technology (Xiamen) (SHSE:603444) are in the red if they invested a year ago

Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that G-bits Network Technology (Xiamen) Co., Ltd. (SHSE:603444) stock has had a really bad year. In that relatively short period, the share price has plunged 60%. We note that it has not been easy for shareholders over three years, either; the share price is down 60% in that time. On the other hand, we note it's up 8.7% in about a month. However, this may be a matter of broader market optimism, since stocks are up 5.4% in the same time.

It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.

View our latest analysis for G-bits Network Technology (Xiamen)

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Unhappily, G-bits Network Technology (Xiamen) had to report a 25% decline in EPS over the last year. The share price decline of 60% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

This free interactive report on G-bits Network Technology (Xiamen)'s earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

We regret to report that G-bits Network Technology (Xiamen) shareholders are down 59% for the year. Unfortunately, that's worse than the broader market decline of 7.4%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 1.5%, each year, over five years. 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. Is G-bits Network Technology (Xiamen) cheap compared to other companies? These 3 valuation measures might help you decide.

But note: G-bits Network Technology (Xiamen) 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.

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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.