It is a pleasure to report that the Pacific Radiance Ltd. (SGX:RXS) is up 41% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 20% in a year, falling short of the returns you could get by investing in an index fund.

It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.

Check out our latest analysis for Pacific Radiance

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Unhappily, Pacific Radiance had to report a 98% decline in EPS over the last year. The share price fall of 20% isn't as bad as the reduction in earnings per share. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

This free interactive report on Pacific Radiance's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About The Total Shareholder Return (TSR)?

We've already covered Pacific Radiance's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Pacific Radiance's TSR, which was a 7.2% drop over the last 1 year, was not as bad as the share price return.

A Different Perspective

Given that the market gained 8.9% in the last year, Pacific Radiance shareholders might be miffed that they lost 7.2%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Putting aside the last twelve months, it's good to see the share price has rebounded by 41%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 5 warning signs for Pacific Radiance you should be aware of, and 2 of them can't be ignored.