Ideally, your overall portfolio should beat the market average. But in any portfolio, there will be mixed results between individual stocks. At this point some shareholders may be questioning their investment in Zhejiang Huace Film & TV Co., Ltd. (SZSE:300133), since the last five years saw the share price fall 45%. Shareholders have had an even rougher run lately, with the share price down 21% in the last 90 days.

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

See our latest analysis for Zhejiang Huace Film & TV

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...' 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.

Zhejiang Huace Film & TV became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move.

The modest 0.4% dividend yield is unlikely to be guiding the market view of the stock. Arguably, the revenue drop of 15% a year for half a decade suggests that the company can't grow in the long term. That could explain the weak share price.

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

We know that Zhejiang Huace Film & TV has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Zhejiang Huace Film & TV's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Zhejiang Huace Film & TV has rewarded shareholders with a total shareholder return of 30% in the last twelve months. That's including the dividend. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Zhejiang Huace Film & TV better, we need to consider many other factors. For example, we've discovered 1 warning sign for Zhejiang Huace Film & TV that you should be aware of before investing here.

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 Chinese 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.