Shanghai Sanyou Medical's declining ROCE trend is worrying. The company is using more capital while revenue drops, suggesting a potential loss of competitive edge or market share. The stock's significant drop over the past three years indicates investors are noticing these negative shifts.

Despite Shanghai Sanyou Medical's low ROE, its high earnings growth is attributed to the company's reinvestment of a significant portion of its profits into its business. Analysts forecast that the company will continue to see an expansion in its earnings.

The declining ROCE and stock price of Shanghai Sanyou Medical might suggest that it could be challenging for the company to provide substantial returns in the near future. Investors are advised to explore other options considering the underlying trends.