Market is not liking JBM (Healthcare)'s (HKG:2161) earnings decline as stock retreats 11% this week

Taking the occasional loss comes part and parcel with investing on the stock market. And unfortunately for JBM (Healthcare) Limited (HKG:2161) shareholders, the stock is a lot lower today than it was a year ago. To wit the share price is down 57% in that time. We wouldn't rush to judgement on JBM (Healthcare) because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 23% in the last 90 days. Of course, this share price action may well have been influenced by the 17% decline in the broader market, throughout the period.

After losing 11% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for JBM (Healthcare)

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. 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, JBM (Healthcare) had to report a 70% decline in EPS over the last year. This fall in the EPS is significantly worse than the 57% the share price fall. It may have been that the weak EPS was not as bad as some had feared. With a P/E ratio of 62.65, it's fair to say the market sees an EPS rebound on the cards.

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

Dive deeper into JBM (Healthcare)'s key metrics by checking this interactive graph of JBM (Healthcare)'s earnings, revenue and cash flow.

A Different Perspective

JBM (Healthcare) shareholders are down 57% for the year, even worse than the market loss of 22%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 23% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. 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 5 warning signs for JBM (Healthcare) you should be aware of, and 1 of them is a bit unpleasant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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. 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.