HUTCHMED (China) (LON:HCM) shareholders are still up 46% over 1 year despite pulling back 4.7% in the past week

HUTCHMED (China) Limited (LON:HCM) shareholders have seen the share price descend 20% over the month. But that doesn't change the fact that the returns over the last year have been pleasing. To wit, it had solidly beat the market, up 46%.

While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

See our latest analysis for HUTCHMED (China)

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 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.

HUTCHMED (China) went from making a loss to reporting a profit, in the last year.

We think the growth looks very prospective, so we're not surprised the market liked it too. Inflection points like this can be a great time to take a closer look at a company.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that HUTCHMED (China) has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling HUTCHMED (China) stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that HUTCHMED (China) shareholders have received a total shareholder return of 46% over one year. There's no doubt those recent returns are much better than the TSR loss of 6% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. Even so, be aware that HUTCHMED (China) is showing 1 warning sign in our investment analysis , you should know about...

Of course HUTCHMED (China) may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British 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.