Vcanbio Cell & Gene Engineering (SHSE:600645) delivers shareholders 5.2% CAGR over 5 years, surging 5.0% in the last week alone

Stock pickers are generally looking for stocks that will outperform the broader market. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, the Vcanbio Cell & Gene Engineering Corp., Ltd (SHSE:600645) share price is up 29% in the last 5 years, clearly besting the market return of around 15% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 9.9%.

The past week has proven to be lucrative for Vcanbio Cell & Gene Engineering investors, so let's see if fundamentals drove the company's five-year performance.

Check out our latest analysis for Vcanbio Cell & Gene Engineering

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

During the last half decade, Vcanbio Cell & Gene Engineering became profitable. That would generally be considered a positive, so we'd hope to see the share price to rise.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Vcanbio Cell & Gene Engineering's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Vcanbio Cell & Gene Engineering provided a TSR of 9.9% over the last twelve months. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 5% per year over five year. This suggests the company might be improving over time. Before deciding if you like the current share price, check how Vcanbio Cell & Gene Engineering scores on these 3 valuation metrics.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

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.