The one-year earnings decline is not helping Sangsin Energy Display PrecisionLtd's (KOSDAQ:091580 share price, as stock falls another 11% in past week

Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held Sangsin Energy Display Precision Co.,Ltd. (KOSDAQ:091580) over the last year knows what a loser feels like. The share price is down a hefty 59% in that time. To make matters worse, the returns over three years have also been really disappointing (the share price is 52% lower than three years ago). The last week also saw the share price slip down another 11%.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

Unhappily, Sangsin Energy Display PrecisionLtd had to report a 84% decline in EPS over the last year. This fall in the EPS is significantly worse than the 59% the share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Sangsin Energy Display PrecisionLtd's key metrics by checking this interactive graph of Sangsin Energy Display PrecisionLtd's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 8.2% in the twelve months, Sangsin Energy Display PrecisionLtd shareholders did even worse, losing 59% (even including dividends). Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 7% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Sangsin Energy Display PrecisionLtd , and understanding them should be part of your investment process.

We will like Sangsin Energy Display PrecisionLtd 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 South Korean 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.