Green Future Food Hydrocolloid Marine Science's(HKG:1084) Share Price Is Down 11% Over The Past Year.

Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Unfortunately the Green Future Food Hydrocolloid Marine Science Company Limited (HKG:1084) share price slid 11% over twelve months. That's well below the market return of 22%. Green Future Food Hydrocolloid Marine Science may have better days ahead, of course; we've only looked at a one year period.

Check out our latest analysis for Green Future Food Hydrocolloid Marine Science

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Unfortunately Green Future Food Hydrocolloid Marine Science reported an EPS drop of 25% for the last year. The share price fall of 11% isn't as bad as the reduction in earnings per share. It may have been that the weak EPS was not as bad as some had feared.

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

This free interactive report on Green Future Food Hydrocolloid Marine Science's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Green Future Food Hydrocolloid Marine Science the TSR over the last year was -4.5%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

While Green Future Food Hydrocolloid Marine Science shareholders are down 4.5% for the year (even including dividends), the market itself is up 22%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. The share price decline seems to have halted in the most recent three months, with the relatively flat share price suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Green Future Food Hydrocolloid Marine Science better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Green Future Food Hydrocolloid Marine Science you should be aware of, and 1 of them is concerning.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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This article by Simply Wall St is general in nature. 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.
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