China Display Optoelectronics Technology Holdings Limited (HKG:334) shareholders should be happy to see the share price up 15% in the last month. But that is little comfort to those holding over the last half decade, sitting on a big loss. In fact, the share price has declined rather badly, down some 62% in that time. So we're hesitant to put much weight behind the short term increase. Of course, this could be the start of a turnaround.
The recent uptick of 12% could be a positive sign of things to come, so let's take a look at historical fundamentals.
Check out our latest analysis for China Display Optoelectronics Technology Holdings
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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the five years over which the share price declined, China Display Optoelectronics Technology Holdings' earnings per share (EPS) dropped by 24% each year. The share price decline of 17% per year isn't as bad as the EPS decline. The relatively muted share price reaction might be because the market expects the business to turn around.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
Dive deeper into China Display Optoelectronics Technology Holdings' key metrics by checking this interactive graph of China Display Optoelectronics Technology Holdings's earnings, revenue and cash flow.
A Different Perspective
China Display Optoelectronics Technology Holdings shareholders gained a total return of 4.7% during the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 10% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand China Display Optoelectronics Technology Holdings better, we need to consider many other factors. Even so, be aware that China Display Optoelectronics Technology Holdings is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...
Of course China Display Optoelectronics Technology Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong 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.