Xinjiang Haoyuan Natural Gas (SZSE:002700) sheds 12% this week, as yearly returns fall more in line with earnings growth

Xinjiang Haoyuan Natural Gas Co., Ltd. (SZSE:002700) shareholders have seen the share price descend 12% over the month. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 96% in that time.

Since the long term performance has been good but there's been a recent pullback of 12%, let's check if the fundamentals match the share price.

See our latest analysis for Xinjiang Haoyuan Natural Gas

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

Xinjiang Haoyuan Natural Gas was able to grow EPS by 27% in the last twelve months. This EPS growth is significantly lower than the 96% increase in the share price. This indicates that the market is now more optimistic about the stock.

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

This free interactive report on Xinjiang Haoyuan Natural Gas' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Xinjiang Haoyuan Natural Gas shareholders have received a total shareholder return of 98% over the last year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 3% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Case in point: We've spotted 2 warning signs for Xinjiang Haoyuan Natural Gas you should be aware of, and 1 of them is potentially serious.

We will like Xinjiang Haoyuan Natural Gas 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.