Even the best stock pickers will make plenty of bad investments. Anyone who held Guangdong Lyric Robot Automation Co., Ltd. (SHSE:688499) over the last year knows what a loser feels like. The share price is down a hefty 60% in that time. We wouldn't rush to judgement on Guangdong Lyric Robot Automation because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 43% in the last 90 days.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

View our latest analysis for Guangdong Lyric Robot Automation

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

Unfortunately Guangdong Lyric Robot Automation reported an EPS drop of 45% for 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. Of course, with a P/E ratio of 51.52, the market remains optimistic.

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

This free interactive report on Guangdong Lyric Robot Automation's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

We doubt Guangdong Lyric Robot Automation shareholders are happy with the loss of 60% over twelve months (even including dividends). That falls short of the market, which lost 4.0%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 43%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. 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. For example, we've discovered 3 warning signs for Guangdong Lyric Robot Automation (1 is potentially serious!) that you should be aware of before investing here.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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.