The truth is that if you invest for long enough, you're going to end up with some losing stocks. But long term Keshun Waterproof Technolgies Co.,Ltd. (SZSE:300737) shareholders have had a particularly rough ride in the last three year. So they might be feeling emotional about the 64% share price collapse, in that time. And more recent buyers are having a tough time too, with a drop of 60% in the last year. The falls have accelerated recently, with the share price down 21% in the last three months. Of course, this share price action may well have been influenced by the 8.8% decline in the broader market, throughout the period.

The recent uptick of 9.7% could be a positive sign of things to come, so let's take a look at historical fundamentals.

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.

Over the three years that the share price declined, Keshun Waterproof TechnolgiesLtd's earnings per share (EPS) dropped significantly, falling to a loss. Due to the loss, it's not easy to use EPS as a reliable guide to the business. However, we can say we'd expect to see a falling share price in this scenario.

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

Dive deeper into Keshun Waterproof TechnolgiesLtd's key metrics by checking this interactive graph of Keshun Waterproof TechnolgiesLtd's earnings, revenue and cash flow.

A Different Perspective

We regret to report that Keshun Waterproof TechnolgiesLtd shareholders are down 60% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 17%. 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 0.7% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Keshun Waterproof TechnolgiesLtd better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Keshun Waterproof TechnolgiesLtd you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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.