Chengdu Yunda Technology (SZSE:300440) stock falls 11% in past week as three-year earnings and shareholder returns continue downward trend

Chengdu Yunda Technology Co., Ltd. (SZSE:300440) shareholders should be happy to see the share price up 18% in the last quarter. But that doesn't help the fact that the three year return is less impressive. After all, the share price is down 22% in the last three years, significantly under-performing the market.

If the past week is anything to go by, investor sentiment for Chengdu Yunda Technology isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Chengdu Yunda Technology

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the three years that the share price fell, Chengdu Yunda Technology's earnings per share (EPS) dropped by 7.2% each year. This change in EPS is reasonably close to the 8% average annual decrease in the share price. So it seems that investor expectations of the company are staying pretty steady, despite the disappointment. Rather, the share price has approximately tracked EPS growth.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

Chengdu Yunda Technology shareholders are up 3.5% for the year (even including dividends). But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 1.8% endured over half a decade. So this might be a sign the business has turned its fortunes around. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 4 warning signs we've spotted with Chengdu Yunda Technology (including 1 which is a bit unpleasant) .

We will like Chengdu Yunda 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.

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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.