Investors in Unigroup Guoxin Microelectronics (SZSE:002049) have unfortunately lost 62% over the last three years

The truth is that if you invest for long enough, you're going to end up with some losing stocks. Long term Unigroup Guoxin Microelectronics Co., Ltd. (SZSE:002049) shareholders know that all too well, since the share price is down considerably over three years. Sadly for them, the share price is down 62% in that time. Shareholders have had an even rougher run lately, with the share price down 10% in the last 90 days.

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 Unigroup Guoxin Microelectronics

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

Unigroup Guoxin Microelectronics saw its EPS decline at a compound rate of 1.2% per year, over the last three years. The share price decline of 28% is actually steeper than the EPS slippage. So it's likely that the EPS decline has disappointed the market, leaving investors hesitant to buy.

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

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

Unigroup Guoxin Microelectronics provided a TSR of 2.5% over the last twelve months. Unfortunately this falls short of the market return. If we look back over five years, the returns are even better, coming in at 8% per year for five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand Unigroup Guoxin Microelectronics better, we need to consider many other factors. For instance, we've identified 1 warning sign for Unigroup Guoxin Microelectronics that you should be aware of.

Of course Unigroup Guoxin Microelectronics 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.