Zhejiang Viewshine Intelligent MeterLtd (SZSE:002849) sheds CN¥285m, company earnings and investor returns have been trending downwards for past year

It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Investors in Zhejiang Viewshine Intelligent Meter Co.,Ltd (SZSE:002849) have tasted that bitter downside in the last year, as the share price dropped 34%. That falls noticeably short of the market decline of around 12%. On the bright side, the stock is actually up 28% in the last three years. The falls have accelerated recently, with the share price down 23% in the last three months.

With the stock having lost 10% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

See our latest analysis for Zhejiang Viewshine Intelligent MeterLtd

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Unfortunately Zhejiang Viewshine Intelligent MeterLtd reported an EPS drop of 12% for the last year. The share price decline of 34% is actually more than the EPS drop. This suggests the EPS fall has made some shareholders more nervous about the business.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Zhejiang Viewshine Intelligent MeterLtd's key metrics by checking this interactive graph of Zhejiang Viewshine Intelligent MeterLtd's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 12% in the twelve months, Zhejiang Viewshine Intelligent MeterLtd shareholders did even worse, losing 34% (even including dividends). 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. On the bright side, long term shareholders have made money, with a gain of 1.2% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Zhejiang Viewshine Intelligent MeterLtd (of which 1 is significant!) you should know about.

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.