Chengdu Road & Bridge Engineering CO.,LTD (SZSE:002628) shareholders might be concerned after seeing the share price drop 12% in the last week. But over three years, the returns would have left most investors smiling After all, the share price is up a market-beating 61% in that time.

While this past week has detracted from the company's three-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 the last three years, Chengdu Road & Bridge EngineeringLTD failed to grow earnings per share, which fell 84% (annualized).

Thus, it seems unlikely that the market is focussed on EPS growth at the moment. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

You can only imagine how long term shareholders feel about the declining revenue trend (slipping at 22% per year). The only thing that's clear is there is low correlation between Chengdu Road & Bridge EngineeringLTD's share price and its historic fundamental data. Further research may be required!

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Chengdu Road & Bridge EngineeringLTD's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Chengdu Road & Bridge EngineeringLTD shareholders have received a total shareholder return of 52% over one year. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Chengdu Road & Bridge EngineeringLTD better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Chengdu Road & Bridge EngineeringLTD .

If you are like me, then you will not want to miss this free list of undervalued small caps 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.