Investors in Founder Technology GroupLtd (SHSE:600601) from a year ago are still down 16%, even after 3.1% gain this past week

While it may not be enough for some shareholders, we think it is good to see the Founder Technology Group Co.,Ltd. (SHSE:600601) share price up 16% in a single quarter. It's not great that the stock is down over the last year. But it did better than its market, which fell 18%.

The recent uptick of 3.1% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Check out our latest analysis for Founder Technology GroupLtd

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.

During the last year Founder Technology GroupLtd grew its earnings per share, moving from a loss to a profit.

Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit. So it makes sense to check out some other factors.

In contrast, the 29% drop in revenue is a real concern. Many investors see falling revenue as a likely precursor to lower earnings, so this could well explain the weak share price.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Founder Technology GroupLtd's financial health with this free report on its balance sheet.

A Different Perspective

Although it hurts that Founder Technology GroupLtd returned a loss of 16% in the last twelve months, the broader market was actually worse, returning a loss of 18%. Unfortunately, last year's performance may indicate unresolved challenges, given that it's worse than the annualised loss of 0.8% over the last half decade. While some investors do well specializing in buying companies that are struggling (but nonetheless undervalued), don't forget that Buffett said that 'turnarounds seldom turn'. Is Founder Technology GroupLtd cheap compared to other companies? These 3 valuation measures might help you decide.

Of course Founder Technology GroupLtd 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.

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