If you love investing in stocks you're bound to buy some losers. But long term Yonyou Network Technology Co.,Ltd. (SHSE:600588) shareholders have had a particularly rough ride in the last three year. Unfortunately, they have held through a 65% decline in the share price in that time. And over the last year the share price fell 28%, so we doubt many shareholders are delighted. The falls have accelerated recently, with the share price down 17% in the last three months. Of course, this share price action may well have been influenced by the 11% decline in the broader market, throughout the period.

Since Yonyou Network TechnologyLtd has shed CN¥4.6b from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for Yonyou Network TechnologyLtd

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

Over the three years that the share price declined, Yonyou Network TechnologyLtd's earnings per share (EPS) dropped significantly, falling to a loss. Due to the loss, it's not easy to use EPS as a reliable guide to the business. But it's safe to say we'd generally expect the share price to be lower as a result!

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 Yonyou Network TechnologyLtd's earnings, revenue and cash flow.

A Different Perspective

We regret to report that Yonyou Network TechnologyLtd shareholders are down 27% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 5.0%. 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. On the bright side, long term shareholders have made money, with a gain of 2% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

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.