Anhui Tatfook Technology (SZSE:300134) adds CN¥380m to market cap in the past 7 days, though investors from five years ago are still down 53%

Anhui Tatfook Technology Co., Ltd (SZSE:300134) shareholders should be happy to see the share price up 16% in the last month. But that can't change the reality that over the longer term (five years), the returns have been really quite dismal. In fact, the share price has declined rather badly, down some 53% in that time. Some might say the recent bounce is to be expected after such a bad drop. Of course, this could be the start of a turnaround.

While the last five years has been tough for Anhui Tatfook Technology shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

Check out our latest analysis for Anhui Tatfook 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. 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).

In the last half decade Anhui Tatfook Technology saw its share price fall as its EPS declined below zero. At present it's hard to make valid comparisons between EPS and the share price. However, we can say we'd expect to see a falling share price in this scenario.

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

This free interactive report on Anhui Tatfook Technology's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Anhui Tatfook Technology shareholders are down 15% over twelve months, which isn't far from the market return of -16%. Unfortunately, last year's performance is a deterioration of an already poor long term track record, given the loss of 9% per year over the last five years. It will probably take a substantial improvement in the fundamental performance for the company to reverse this trend. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

But note: Anhui Tatfook Technology may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.