Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held G-bits Network Technology (Xiamen) Co., Ltd. (SHSE:603444) over the last year knows what a loser feels like. The share price has slid 60% in that time. To make matters worse, the returns over three years have also been really disappointing (the share price is 60% lower than three years ago). On the other hand, we note it's up 8.7% in about a month. But this could be related to good market conditions, with stocks up around 5.4% during the period.

Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.

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

Unhappily, G-bits Network Technology (Xiamen) had to report a 25% decline in EPS over the last year. This reduction in EPS is not as bad as the 60% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.

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

Dive deeper into G-bits Network Technology (Xiamen)'s key metrics by checking this interactive graph of G-bits Network Technology (Xiamen)'s earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 7.4% in the twelve months, G-bits Network Technology (Xiamen) shareholders did even worse, losing 59%. 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. Longer term investors wouldn't be so upset, since they would have made 1.5%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Is G-bits Network Technology (Xiamen) cheap compared to other companies? These 3 valuation measures might help you decide.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.