Even after rising 14% this past week, Shandong Hi-Speed New Energy Group (HKG:1250) shareholders are still down 34% over the past three years

It's nice to see the Shandong Hi-Speed New Energy Group Limited (HKG:1250) share price up 14% in a week. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 34% in the last three years, falling well short of the market return.

While the last three years has been tough for Shandong Hi-Speed New Energy Group shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

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There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).

During five years of share price growth, Shandong Hi-Speed New Energy Group moved from a loss to profitability. That would generally be considered a positive, so we are surprised to see the share price is down. So it's worth looking at other metrics to try to understand the share price move.

Arguably the revenue decline of 4.7% per year has people thinking Shandong Hi-Speed New Energy Group is shrinking. And that's not surprising, since it seems unlikely that EPS growth can continue for long in the absence of revenue growth.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We know that Shandong Hi-Speed New Energy Group has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Shandong Hi-Speed New Energy Group's financial health with this free report on its balance sheet.

A Different Perspective

Shandong Hi-Speed New Energy Group shareholders gained a total return of 15% during the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 2% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Shandong Hi-Speed New Energy Group better, we need to consider many other factors. Even so, be aware that Shandong Hi-Speed New Energy Group is showing 1 warning sign in our investment analysis , you should know about...

We will like Shandong Hi-Speed New Energy Group 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 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.