The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Liaoning Shidai Wanheng Co.,Ltd. (SHSE:600241) share price has flown 193% in the last three years. That sort of return is as solid as granite. On top of that, the share price is up 27% in about a quarter.

Since the stock has added CN¥527m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Check out our latest analysis for Liaoning Shidai WanhengLtd

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).

During three years of share price growth, Liaoning Shidai WanhengLtd moved from a loss to profitability. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.

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

Dive deeper into Liaoning Shidai WanhengLtd's key metrics by checking this interactive graph of Liaoning Shidai WanhengLtd's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Liaoning Shidai WanhengLtd shareholders have received a total shareholder return of 9.0% over one year. Having said that, the five-year TSR of 9% a year, is even better. Is Liaoning Shidai WanhengLtd cheap compared to other companies? These 3 valuation measures might help you decide.

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.