The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do both better or worse than that. Unfortunately the Roshow Technology Co., Ltd. (SZSE:002617) share price slid 34% over twelve months. That falls noticeably short of the market decline of around 3.3%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 10% in three years.

Since Roshow Technology has shed CN¥459m 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 Roshow Technology

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Even though the Roshow Technology share price is down over the year, its EPS actually improved. Of course, the situation might betray previous over-optimism about growth. In fact, we can see extraordinary items impacting earnings in the last twelve months.

The divergence between the EPS and the share price is quite notable, during the year. But we might find some different metrics explain the share price movements better.

In contrast, the 18% drop in revenue is a real concern. If the market sees the weak revenue as jeopardising EPS, that could explain the lower share price.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Roshow Technology's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 3.3% in the twelve months, Roshow Technology shareholders did even worse, losing 34%. 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 5% per year over half a decade. 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. You could get a better understanding of Roshow Technology's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.