Strong week for Tianjin Jingwei Huikai Optoelectronic (SZSE:300120) shareholders doesn't alleviate pain of three-year loss

This week we saw the Tianjin Jingwei Huikai Optoelectronic Co., Ltd. (SZSE:300120) share price climb by 20%. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 33% in the last three years, falling well short of the market return.

The recent uptick of 20% could be a positive sign of things to come, so let's take a look at historical fundamentals.

See our latest analysis for Tianjin Jingwei Huikai Optoelectronic

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over the three years that the share price declined, Tianjin Jingwei Huikai Optoelectronic's earnings per share (EPS) dropped significantly, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Dive deeper into Tianjin Jingwei Huikai Optoelectronic's key metrics by checking this interactive graph of Tianjin Jingwei Huikai Optoelectronic's earnings, revenue and cash flow.

A Different Perspective

We regret to report that Tianjin Jingwei Huikai Optoelectronic shareholders are down 21% for the year. Unfortunately, that's worse than the broader market decline of 17%. 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. Longer term investors wouldn't be so upset, since they would have made 0.2%, each year, over five years. 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 Tianjin Jingwei Huikai Optoelectronic better, we need to consider many other factors. For instance, we've identified 2 warning signs for Tianjin Jingwei Huikai Optoelectronic (1 is significant) that 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