The 15% return this week takes Beijing Beida Jade Bird Universal Sci-Tech's (HKG:8095) shareholders one-year gains to 196%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Beijing Beida Jade Bird Universal Sci-Tech Company Limited (HKG:8095). Its share price is already up an impressive 196% in the last twelve months. Also pleasing for shareholders was the 52% gain in the last three months. It is also impressive that the stock is up 116% over three years, adding to the sense that it is a real winner.

The past week has proven to be lucrative for Beijing Beida Jade Bird Universal Sci-Tech investors, so let's see if fundamentals drove the company's one-year performance.

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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...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year Beijing Beida Jade Bird Universal Sci-Tech grew its earnings per share, moving from a loss to a profit.

The result looks like a strong improvement to us, so we're not surprised the market likes the growth. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Beijing Beida Jade Bird Universal Sci-Tech's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Beijing Beida Jade Bird Universal Sci-Tech shareholders have received a total shareholder return of 196% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 24% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Even so, be aware that Beijing Beida Jade Bird Universal Sci-Tech is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

We will like Beijing Beida Jade Bird Universal Sci-Tech better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.