It's easy to match the overall market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. For example, the Pengdu Agriculture & Animal Husbandry Co.,Ltd. (SZSE:002505) share price is down 37% in the last year. That falls noticeably short of the market decline of around 5.8%. To make matters worse, the returns over three years have also been really disappointing (the share price is 31% lower than three years ago). The last week also saw the share price slip down another 5.9%.

If the past week is anything to go by, investor sentiment for Pengdu Agriculture & Animal HusbandryLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Pengdu Agriculture & Animal HusbandryLtd

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 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 Pengdu Agriculture & Animal HusbandryLtd saw its earnings per share drop below zero. Buyers no doubt think it's a temporary situation, but those with a nose for quality have low tolerance for losses. We hope for shareholders' sake that the company becomes profitable again soon.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

This free interactive report on Pengdu Agriculture & Animal HusbandryLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

While the broader market lost about 5.8% in the twelve months, Pengdu Agriculture & Animal HusbandryLtd shareholders did even worse, losing 37%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 2% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Pengdu Agriculture & Animal HusbandryLtd that you should be aware of.

We will like Pengdu Agriculture & Animal HusbandryLtd better if we see some big insider buys. While we wait, check out this free list of growing companies 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 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.