Recent 14% pullback isn't enough to hurt long-term Star Shine Holdings Group (HKG:1440) shareholders, they're still up 61% over 1 year

Star Shine Holdings Group Limited (HKG:1440) shareholders might be concerned after seeing the share price drop 14% in the last week. But looking back over the last year, the returns have actually been rather pleasing! Looking at the full year, the company has easily bested an index fund by gaining 61%.

Although Star Shine Holdings Group has shed HK$353m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for Star Shine Holdings Group

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year Star Shine Holdings Group saw its earnings per share (EPS) drop below zero. While some may see this as temporary, we're a skeptical bunch, and so we're a little surprised to see the share price go up. It may be that the company has done well on other metrics.

Unfortunately Star Shine Holdings Group's fell 19% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Take a more thorough look at Star Shine Holdings Group's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Star Shine Holdings Group shareholders have gained 61% over the last year. And the share price momentum remains respectable, with a gain of 14% in the last three months. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Star Shine Holdings Group better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Star Shine Holdings Group you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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