These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Shanghai HYP-ARCH Architectural Design Consultant Co.,Ltd. (SZSE:301024) share price is 33% higher than it was a year ago, much better than the market decline of around 7.7% (not including dividends) in the same period. So that should have shareholders smiling. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

See our latest analysis for Shanghai HYP-ARCH Architectural Design ConsultantLtd

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Over the last twelve months Shanghai HYP-ARCH Architectural Design ConsultantLtd went from profitable to unprofitable. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. It may be that the company has done well on other metrics.

Unfortunately Shanghai HYP-ARCH Architectural Design ConsultantLtd's fell 58% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Shanghai HYP-ARCH Architectural Design ConsultantLtd's financial health with this free report on its balance sheet.

A Different Perspective

Shanghai HYP-ARCH Architectural Design ConsultantLtd shareholders should be happy with the total gain of 33% over the last twelve months. And the share price momentum remains respectable, with a gain of 44% in the last three months. This suggests the company is continuing to win over new investors. 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. Case in point: We've spotted 2 warning signs for Shanghai HYP-ARCH Architectural Design ConsultantLtd you should be aware of, and 1 of them is significant.

Of course Shanghai HYP-ARCH Architectural Design ConsultantLtd may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.