If you love investing in stocks you're bound to buy some losers. But the last three years have been particularly tough on longer term Beken Corporation (SHSE:603068) shareholders. Sadly for them, the share price is down 67% in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 44% lower in that time. On top of that, the share price is down 14% in the last week.

If the past week is anything to go by, investor sentiment for Beken isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for Beken

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Beken saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Due to the loss, it's not easy to use EPS as a reliable guide to the business. But it's safe to say we'd generally expect the share price to be lower as a result!

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

It might be well worthwhile taking a look at our free report on Beken's earnings, revenue and cash flow.

A Different Perspective

The last twelve months weren't great for Beken shares, which performed worse than the market, costing holders 44%, including dividends. Meanwhile, the broader market slid about 19%, likely weighing on the stock. The three-year loss of 19% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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 risks, for instance. Every company has them, and we've spotted 2 warning signs for Beken you should know about.

But note: Beken may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CN 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.