U.S. Markets closed
  • S&P 500

    4,686.75
    +95.08 (+2.07%)
     
  • Dow 30

    35,719.43
    +492.40 (+1.40%)
     
  • Nasdaq

    15,686.92
    +305.62 (+1.99%)
     
  • Russell 2000

    2,253.79
    +47.46 (+2.15%)
     
  • Crude Oil

    71.73
    +2.24 (+3.22%)
     
  • Gold

    1,784.90
    +5.40 (+0.30%)
     
  • Silver

    22.52
    +0.26 (+1.18%)
     
  • EUR/USD

    1.1274
    -0.0032 (-0.2818%)
     
  • 10-Yr Bond

    1.4800
    +0.0320 (+2.21%)
     
  • Vix

    21.89
    -6.06 (-21.68%)
     
  • GBP/USD

    1.3243
    -0.0059 (-0.4436%)
     
  • USD/JPY

    113.5700
    +0.3610 (+0.3189%)
     
  • BTC-USD

    50,598.57
    -142.16 (-0.28%)
     
  • CMC Crypto 200

    1,308.39
    -133.37 (-9.25%)
     
  • FTSE 100

    7,339.90
    +210.69 (+2.96%)
     
  • Nikkei 225

    28,455.60
    +702.20 (+2.53%)
     

Investors in Niu Technologies (NASDAQ:NIU) have made a return of 20% over the past year

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

While Niu Technologies (NASDAQ:NIU) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 21% in the last quarter. Looking on the brighter side, the stock is actually up over twelve months. However, its return of 20% does fall short of the market return of, 32%.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

Check out our latest analysis for Niu Technologies

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.

Niu Technologies was able to grow EPS by 40% in the last twelve months. It's fair to say that the share price gain of 20% did not keep pace with the EPS growth. So it seems like the market has cooled on Niu Technologies, despite the growth. Interesting. Of course, with a P/E ratio of 57.70, the market remains optimistic.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

It is of course excellent to see how Niu Technologies has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Niu Technologies shareholders have gained 20% for the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 32%. The stock trailed the market by 26% in that time, testament to the power of passive investing. It might be that investors are more concerned about the business lately due to some fundamental change (or else the share price simply got ahead of itself, previously). 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. Even so, be aware that Niu Technologies is showing 2 warning signs in our investment analysis , you should know about...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.