Hunan Creator Information Technologies (SZSE:300730 shareholders incur further losses as stock declines 10% this week, taking one-year losses to 32%

While it may not be enough for some shareholders, we think it is good to see the Hunan Creator Information Technologies CO., LTD. (SZSE:300730) share price up 12% in a single quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 32% in a year, falling short of the returns you could get by investing in an index fund.

Since Hunan Creator Information Technologies has shed CN¥256m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for Hunan Creator Information Technologies

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 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.

During the last year Hunan Creator Information Technologies saw its earnings per share drop below zero. Some investors no doubt dumped the stock as a result. We hope for shareholders' sake that the company becomes profitable again soon.

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

It might be well worthwhile taking a look at our free report on Hunan Creator Information Technologies' earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 17% in the twelve months, Hunan Creator Information Technologies shareholders did even worse, losing 32%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Hunan Creator Information Technologies you should be aware of.

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.

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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.

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