The nature of investing is that you win some, and you lose some. And unfortunately for Evergreen Products Group Limited (HKG:1962) shareholders, the stock is a lot lower today than it was a year ago. The share price has slid 70% in that time. Evergreen Products Group hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. The falls have accelerated recently, with the share price down 28% in the last three months.

Check out our latest analysis for Evergreen Products Group

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.

Unhappily, Evergreen Products Group had to report a 20% decline in EPS over the last year. This reduction in EPS is not as bad as the 70% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business. The P/E ratio of 6.95 also points to the negative market sentiment.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Evergreen Products Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

We doubt Evergreen Products Group shareholders are happy with the loss of 70% over twelve months (even including dividends) . That falls short of the market, which lost 7.6%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 28% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with Evergreen Products Group (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.