Paslin Digital Technology's (SHSE:600215) one-year decline in earnings translates into losses for shareholders

Paslin Digital Technology Co., Ltd. (SHSE:600215) shareholders should be happy to see the share price up 13% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. The cold reality is that the stock has dropped 23% in one year, under-performing the market.

On a more encouraging note the company has added CN¥339m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

View our latest analysis for Paslin Digital Technology

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Unhappily, Paslin Digital Technology had to report a 44% decline in EPS over the last year. This fall in the EPS is significantly worse than the 23% the share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.

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

It might be well worthwhile taking a look at our free report on Paslin Digital Technology's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 7.4% in the last year, Paslin Digital Technology shareholders lost 22% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 1.1%, 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. It's always interesting to track share price performance over the longer term. But to understand Paslin Digital Technology better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Paslin Digital Technology you should know about.

Of course Paslin Digital Technology may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.