Despite strong stock performance, New East New Materials' fundamentals don't inspire confidence. Declining ROCE and stagnant capital employed suggest possible competitive pressures and margin challenges.

Despite slow growth, investors' bullishness could cause disappointment if the P/S ratio aligns with actual growth. High P/S ratio may risk excessive premiums, potentially leading to a share price drop.

Investors might not be primarily focused on EPS despite its continuous drop, as other factors contribute to the share price growth. Over the past five years, the company has outperformed the share price return with a total shareholder return of 323%.

The diminishing returns could hamper the company's long-term performance and adversely affect the outlook for potential investors, despite its past growth. Unless trends reverse, alternative investment opportunities may be more beneficial.