Shareholders 34% loss in Guangxi Oriental Intelligent Manufacturing Technology (SZSE:002175) partly attributable to the company's decline in earnings over past year

It's nice to see the Guangxi Oriental Intelligent Manufacturing Technology Co., Ltd. (SZSE:002175) share price up 18% in a week. But in truth the last year hasn't been good for the share price. In fact the stock is down 34% in the last year, well below the market return.

While the stock has risen 18% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

Check out our latest analysis for Guangxi Oriental Intelligent Manufacturing Technology

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. 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, Guangxi Oriental Intelligent Manufacturing Technology had to report a 55% decline in EPS over the last year. The share price fall of 34% isn't as bad as the reduction in earnings per share. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster. Indeed, with a P/E ratio of 56.06 there is obviously some real optimism that earnings will bounce back.

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

While the broader market lost about 18% in the twelve months, Guangxi Oriental Intelligent Manufacturing Technology shareholders did even worse, losing 34%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 1.5% per year over half a decade. 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 Guangxi Oriental Intelligent Manufacturing Technology better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Guangxi Oriental Intelligent Manufacturing Technology you should be aware of.

We will like Guangxi Oriental Intelligent Manufacturing Technology better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese exchanges.

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

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.