China-based Feihe International Inc (ADY.N) has lower earnings quality than more than 80 percent of its global peers, an analysis of StarMine data shows.

The provider of infant formula and milk powder scores 17 out of a possible 100 based on StarMine's earnings quality ranking, according to Reuters equities analyst Mike Tarsala and Tim Gaumer, analyst with Thomson Reuters Investment and Advisory.

That ranking takes into account the level of accruals relative to revenue and other metrics, cash flows backing earnings, as well as operating efficiency.

Emerging markets stocks with earnings scores of 10 or below underperformed those with scores above 90 by 15.5 percent on an annualized basis, based on a 10-year back test.

Feihe would not comment on the analysis.

The stock, one of many to be hit recently with questions over accounting, stood out for having a consistent gap between operating income and pre-tax income. Government subsidies had been making up a larger portion of pre-tax income in recent quarters. However, that subsidy fell in the March period.

The resignation of CFO Jonathan Chou in November for personal reasons has not helped confidence either, according to Tarsala.