It hasn't been the best quarter for XIANGPIAOPIAO Food Co.,Ltd (SHSE:603711) shareholders, since the share price has fallen 12% in that time. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. In that time we've seen the stock easily surpass the market return, with a gain of 54%.

Since the stock has added CN¥386m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for XIANGPIAOPIAO FoodLtd

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.

During the last year XIANGPIAOPIAO FoodLtd grew its earnings per share (EPS) by 204%. This EPS growth is significantly higher than the 54% increase in the share price. So it seems like the market has cooled on XIANGPIAOPIAO FoodLtd, despite the growth. Interesting.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of XIANGPIAOPIAO FoodLtd's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that XIANGPIAOPIAO FoodLtd shareholders have received a total shareholder return of 55% over the last year. And that does include the dividend. That's better than the annualised return of 2% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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 XIANGPIAOPIAO FoodLtd you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.