It hasn't been the best quarter for Zhongnongfa Seed Industry Group Co., Ltd. (SHSE:600313) shareholders, since the share price has fallen 12% in that time. On the bright side the returns have been quite good over the last half decade. It has returned a market beating 90% in that time. While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 37% drop, in the last year.

The past week has proven to be lucrative for Zhongnongfa Seed Industry Group investors, so let's see if fundamentals drove the company's five-year performance.

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over half a decade, Zhongnongfa Seed Industry Group managed to grow its earnings per share at 31% a year. This EPS growth is higher than the 14% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock.

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

It might be well worthwhile taking a look at our free report on Zhongnongfa Seed Industry Group's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 19% in the twelve months, Zhongnongfa Seed Industry Group shareholders did even worse, losing 37%. 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 14%, 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Zhongnongfa Seed Industry Group is showing 2 warning signs in our investment analysis , you should know about...

But note: Zhongnongfa Seed Industry Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.