Zhong Yang Technology's (TPE:6668) Stock Price Has Reduced 59% In The Past Three Years

Zhong Yang Technology Co., Ltd. (TPE:6668) shareholders should be happy to see the share price up 24% in the last quarter. Meanwhile over the last three years the stock has dropped hard. In that time, the share price dropped 59%. So the improvement may be a real relief to some. Perhaps the company has turned over a new leaf.

View our latest analysis for Zhong Yang Technology

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

During the three years that the share price fell, Zhong Yang Technology's earnings per share (EPS) dropped by 37% each year. In comparison the 26% compound annual share price decline isn't as bad as the EPS drop-off. So, despite the prior disappointment, shareholders must have some confidence the situation will improve, longer term. With a P/E ratio of 54.70, it's fair to say the market sees a brighter future for the business.

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

Dive deeper into Zhong Yang Technology's key metrics by checking this interactive graph of Zhong Yang Technology's earnings, revenue and cash flow.

A Different Perspective

Over the last year, Zhong Yang Technology shareholders took a loss of 21%. In contrast the market gained about 39%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 16% per annum loss investors have suffered over the last three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. 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. Case in point: We've spotted 3 warning signs for Zhong Yang Technology you should be aware of, and 2 of them shouldn't be ignored.

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 TW 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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