Tianjin Teda's (SZSE:000652) revenue and shareholder return have been declining over the past five years, but the stock price rose 7.1% last week.

Ideally, your entire portfolio should outperform the market average. But the main battle will be finding enough winners to offset the losers. Some shareholders may have doubts about investing in their company at this point. Tianjin Teda Co., Ltd. (SZSE:000652), since the stock has fallen 16% over the past five years.

Long-term shareholders are still in the red even though the stock price is up 7.1% over the past week, but let's see what the fundamentals tell us.

Check out our latest analysis for Tianjin Teda.

in his essay Graham & Doddsville SuperInvestors Warren Buffett explained that stock prices do not always rationally reflect the value of a company. One way he looks at how market sentiment has changed over time is to look at the interaction between a company's stock price and his earnings per share (EPS).

During the five years that the share price fell, Tianjin Teda's earnings per share (EPS) declined by 10% every year. This drop in EPS is more severe than the 3% annual compounded share price decline. The relatively muted reaction in stock prices may be because the market expects business to improve.

The company's earnings per share (long-term) are depicted in the image below (click to see the exact numbers).

It might be well worth taking a look at ours free Report on Tianjin Teda's earnings, revenue and cash flow.

What will happen to the dividend?

As well as measuring share price return, investors should also consider total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital increases and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return delivered by a stock. We note that Tianjin Teda's TSR over the past 5 years was -13%, which is better than the share price return mentioned above. This is primarily due to dividend payments.

different perspective

While the overall market lost around 11% over the 12-month period, Tianjin Teda shareholders' losses were even worse, losing 13% (even including dividends). However, it is also possible that the stock price is simply being affected by broader market fluctuations. It might be worth looking at the basics in case a good opportunity presents itself. Unfortunately, last year's performance ended on a down note, with shareholders facing a total annual loss of 3% over five years. Generally speaking, long-term stock price weakness can be a bad sign, but contrarian investors may want to research the stock in hopes of a turnaround. It's always interesting to track stock performance over the long term. However, to understand Tianjin Teda better, many other factors need to be considered.Please note that Tianjin Teda is still visible 3 warning signs in investment analysis two of which cannot be ignored…

If you want to check out another company with potentially better financials, don't miss this free A list of companies that have proven they can grow their revenue.

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 using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.