This week we saw the GuangDong PaiSheng Intelligent Technology Co.,Ltd (SZSE:300176) share price climb by 21%. But don't envy holders -- looking back over 5 years the returns have been really bad. Indeed, the share price is down 64% in the period. So we're not so sure if the recent bounce should be celebrated. But it could be that the fall was overdone.

While the last five years has been tough for GuangDong PaiSheng Intelligent TechnologyLtd shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

See our latest analysis for GuangDong PaiSheng Intelligent TechnologyLtd

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over five years GuangDong PaiSheng Intelligent TechnologyLtd's earnings per share dropped significantly, falling to a loss, with the share price also lower. At present it's hard to make valid comparisons between EPS and the share price. However, we can say we'd expect to see a falling share price in this scenario.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

This free interactive report on GuangDong PaiSheng Intelligent TechnologyLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

The total return of 9.8% received by GuangDong PaiSheng Intelligent TechnologyLtd shareholders over the last year isn't far from the market return of -10%. However, the loss over the last year isn't as bad as the 10% per annum loss investors have suffered over the last half decade. Generally speaking we'd prefer see an improvement in the fundamental metrics before becoming enthusiastic about the stock. It's always interesting to track share price performance over the longer term. But to understand GuangDong PaiSheng Intelligent TechnologyLtd better, we need to consider many other factors. For instance, we've identified 2 warning signs for GuangDong PaiSheng Intelligent TechnologyLtd that you should be aware of.

We will like GuangDong PaiSheng Intelligent TechnologyLtd 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 CN exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.