Puyi (NASDAQ:PUYI) Shareholders Booked A 15% Gain In The Last Year

By
Simply Wall St
Published
March 17, 2021
NasdaqGM:PUYI
Source: Shutterstock

We believe investing is smart because history shows that stock markets go higher in the long term. But not every stock you buy will perform as well as the overall market. Unfortunately for shareholders, while the Puyi Inc. (NASDAQ:PUYI) share price is up 15% in the last year, that falls short of the market return. Puyi hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for Puyi

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year Puyi saw its earnings per share (EPS) drop below zero. While some may see this as temporary, we're a skeptical bunch, and so we're a little surprised to see the share price go up. It may be that the company has done well on other metrics.

Puyi's revenue actually dropped 36% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
NasdaqGM:PUYI Earnings and Revenue Growth March 18th 2021

Take a more thorough look at Puyi's financial health with this free report on its balance sheet.

A Different Perspective

We're happy to report that Puyi are up 15% over the year. Unfortunately this falls short of the market return of around 83%. The last three months haven't been great for shareholder returns, since the share price has trailed the market by 3.1% in the last three months. It might be that investors are more concerned about the business lately due to some fundamental change (or else the share price simply got ahead of itself, previously). It's always interesting to track share price performance over the longer term. But to understand Puyi better, we need to consider many other factors. Take risks, for example - Puyi has 1 warning sign we think you should be aware of.

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 US exchanges.

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