Beijing Changjiu LogisticsLtd's (SHSE:603569 one-year decrease in earnings delivers investors with a 38% loss

It is doubtless a positive to see that the Beijing Changjiu Logistics Co.,Ltd (SHSE:603569) share price has gained some 33% in the last three months. But that doesn't change the fact that the returns over the last year have been less than pleasing. After all, the share price is down 39% in the last year, significantly under-performing the market.

With the stock having lost 11% 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 Beijing Changjiu LogisticsLtd

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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, Beijing Changjiu LogisticsLtd had to report a 46% decline in EPS over the last year. We note that the 39% share price drop is very close to the EPS drop. Therefore one could posit that the market has not become more concerned about the company, despite the lower EPS. Instead, the change in the share price seems to reduction in earnings per share, alone.

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 Beijing Changjiu LogisticsLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Investors in Beijing Changjiu LogisticsLtd had a tough year, with a total loss of 38% (including dividends), against a market gain of about 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 3% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Beijing Changjiu LogisticsLtd better, we need to consider many other factors. Take risks, for example - Beijing Changjiu LogisticsLtd has 5 warning signs (and 3 which are significant) we think you should know about.

But note: Beijing Changjiu LogisticsLtd 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.