By buying an index fund, investors can approximate the average market return. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, the Oversea-Chinese Banking Corporation Limited (SGX:O39) share price is up 10% in the last three years, clearly besting the market decline of around 9.3% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 2.7% in the last year , including dividends .
The past week has proven to be lucrative for Oversea-Chinese Banking investors, so let's see if fundamentals drove the company's three-year performance.
Check out our latest analysis for Oversea-Chinese Banking
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Oversea-Chinese Banking was able to grow its EPS at 0.8% per year over three years, sending the share price higher. This EPS growth is lower than the 3% average annual increase in the share price. This indicates that the market is feeling more optimistic on the stock, after the last few years of progress. That's not necessarily surprising considering the three-year track record of earnings growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
SGX:O39 Earnings Per Share Growth August 4th 2022
It might be well worthwhile taking a look at our free report on Oversea-Chinese Banking's earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Oversea-Chinese Banking, it has a TSR of 25% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Oversea-Chinese Banking provided a TSR of 2.7% over the last twelve months. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 5% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. 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. Case in point: We've spotted 2 warning signs for Oversea-Chinese Banking you should be aware of, and 1 of them is a bit unpleasant.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG 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.
通过购买指数基金,投资者可以接近平均市场回报。但如果你以有吸引力的价格收购好企业,你的投资组合回报可能会超过平均市场回报。例如,华侨银行股份有限公司(新加坡证券交易所股票代码:O39)股价在过去三年中上涨了10%,显然超过了市场约9.3%的跌幅(不包括股息)。然而,最近的回报没有那么令人印象深刻,包括股息在内,该股去年的回报率仅为2.7%。
事实证明,过去一周对华侨银行投资者来说是有利可图的,所以让我们看看基本面因素是否推动了该公司三年的业绩。
请看我们对华侨银行的最新分析
虽然市场是一种强大的定价机制,但股价反映的是投资者情绪,而不仅仅是潜在的企业表现。考察市场情绪如何随时间变化的一种方法是观察一家公司的股价和每股收益(EPS)之间的相互作用。
华侨银行能够在三年内以每年0.8%的速度增长每股收益,推动股价走高。这一EPS增幅低于3%的股价年均增幅。这表明,在经历了过去几年的上涨后,市场对该股的看法变得更加乐观。考虑到三年来盈利增长的记录,这并不一定令人惊讶。
该公司的每股收益(在一段时间内)如下图所示(点击查看具体数字)。
新交所:O39每股收益增长2022年8月4日
也许很值得一看我们的免费华侨银行收益、收入及现金流报告。
那股息呢?
重要的是要考虑任何给定股票的总股东回报以及股价回报。TSR包括任何剥离或贴现融资的价值,以及任何股息,基于股息再投资的假设。公平地说,TSR为支付股息的股票提供了更完整的图景。以华侨银行为例,过去3年的TSR为25%。这超过了我们之前提到的它的股价回报。该公司支付的股息因此提振了总计股东回报。
不同的视角
华侨银行在过去12个月提供了2.7%的TSR。但这低于市场平均水平。如果我们回顾过去五年的情况,回报率甚至更高,连续五年的年回报率为5%。考虑到随着时间的推移,市场对这一业务的持续积极反应,这很可能是一项值得关注的业务。我发现,把股价作为衡量企业业绩的长期指标是非常有趣的。但为了真正获得洞察力,我们还需要考虑其他信息。一个恰当的例子:我们发现了海外中国银行业的2个警示标志你应该知道,其中一个是有点令人不快的。
当然了,如果你把目光投向别处,你可能会发现这是一笔很棒的投资。所以让我们来看看这个免费我们预计收益将会增长的公司名单。
请注意,本文引用的市场回报反映了目前在SG交易所交易的股票的市场加权平均回报。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。