In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the main game is to find enough winners to more than offset the losers So we wouldn't blame long term Haining China Leather Market Co.,Ltd (SZSE:002344) shareholders for doubting their decision to hold, with the stock down 45% over a half decade. More recently, the share price has dropped a further 9.3% in a month. But this could be related to poor market conditions -- stocks are down 7.3% in the same time.
If the past week is anything to go by, investor sentiment for Haining China Leather MarketLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
Check out our latest analysis for Haining China Leather MarketLtd
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 five years over which the share price declined, Haining China Leather MarketLtd's earnings per share (EPS) dropped by 5.3% each year. This reduction in EPS is less than the 11% annual reduction in the share price. This implies that the market was previously too optimistic about the stock.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
SZSE:002344 Earnings Per Share Growth September 20th 2022
We know that Haining China Leather MarketLtd has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.
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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Haining China Leather MarketLtd the TSR over the last 5 years was -43%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
It's nice to see that Haining China Leather MarketLtd shareholders have received a total shareholder return of 9.2% over the last year. Of course, that includes the dividend. There's no doubt those recent returns are much better than the TSR loss of 7% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Haining China Leather MarketLtd better, we need to consider many other factors. Even so, be aware that Haining China Leather MarketLtd is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...
But note: Haining China Leather MarketLtd 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
为了证明挑选个股的努力是合理的,值得努力超越市场指数基金的回报。但主要的游戏是找到足够多的赢家来抵消输家,这样我们就不会责怪长期海宁中国皮革市场有限公司(SZSE:002344)股东对他们持有股票的决定表示怀疑,该股在过去五年中下跌了45%。最近,该公司股价在一个月内进一步下跌了9.3%。但这可能与糟糕的市场状况有关--股市同期下跌了7.3%。
如果以过去一周为标准,投资者对海宁中国皮革市场有限公司的情绪并不乐观,所以让我们看看基本面和股价之间是否存在错配。
查看我们对海宁中国皮革市场有限公司的最新分析
用巴菲特的话说,“船只将在世界各地航行,但平坦的地球协会将蓬勃发展。市场上的价格和价值之间将继续存在巨大的差异……”通过比较每股收益(EPS)和股价随时间的变化,我们可以感受到投资者对一家公司的态度随着时间的推移发生了怎样的变化。
在股价下跌的五年中,海宁中国皮革市场有限公司的每股收益(EPS)每年下降5.3%。每股收益的这一降幅低于该公司股价每年11%的降幅。这暗示市场此前对该股过于乐观。
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)。
深交所:2022年9月20日每股收益增长002344
我们知道海宁中国皮革市场有限公司最近提高了利润,但它会增加收入吗?如果你感兴趣,你可以看看这个免费显示一致收入预测的报告。
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。因此,对于支付丰厚股息的公司来说,TSR往往比股价回报高得多。我们注意到,海宁中国皮革市场有限公司过去5年的TSR为-43%,好于上述股价回报率。而且,猜测股息支付在很大程度上解释了这种差异是没有好处的!
不同的视角
很高兴看到海宁中国皮革市场有限公司的股东在过去一年中获得了9.2%的总股东回报。当然,这包括股息。毫无疑问,最近的回报率远远好于TSR在过去五年中每年7%的损失。这让我们有点警惕,但这家企业可能已经扭转了命运。跟踪股价的长期表现总是很有趣的。但要更好地了解海宁中国皮革市场有限公司,我们还需要考虑许多其他因素。即便如此,请注意,海宁中国皮革市场有限公司正在展示我们的投资分析中的3个警告信号,其中一条让我们有点不舒服...
但请注意:海宁中国皮革市场有限公司可能不是买入的最佳股票。所以让我们来看看这个免费过去有盈利增长(以及进一步增长预测)的有趣公司名单。
请注意,本文引用的市场回报反映了目前在CN交易所交易的股票的市场加权平均回报。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
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。