Anhui Genuine NewMaterials Co.,Ltd. (SHSE:603429) shareholders will doubtless be very grateful to see the share price up 86% in the last quarter. But that is small recompense for the exasperating returns over three years. Indeed, the share price is down a tragic 65% in the last three years. So it is really good to see an improvement. While many would remain nervous, there could be further gains if the business can put its best foot forward.

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

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

Over the three years that the share price declined, Anhui Genuine NewMaterialsLtd's earnings per share (EPS) dropped significantly, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. 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).

Dive deeper into Anhui Genuine NewMaterialsLtd's key metrics by checking this interactive graph of Anhui Genuine NewMaterialsLtd's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 6.2% in the last year, Anhui Genuine NewMaterialsLtd shareholders lost 18% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Anhui Genuine NewMaterialsLtd better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Anhui Genuine NewMaterialsLtd (including 2 which are a bit unpleasant) .

We will like Anhui Genuine NewMaterialsLtd better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider 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.