One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowess, you can make superior returns. Just take a look at Jiangsu Nanfang Medical Co., Ltd. (SHSE:603880), which is up 33%, over three years, soundly beating the market return of 18% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 15% in the last year.
Since it's been a strong week for Jiangsu Nanfang Medical shareholders, let's have a look at trend of the longer term fundamentals.
Check out our latest analysis for Jiangsu Nanfang Medical
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).
Over the last three years, Jiangsu Nanfang Medical failed to grow earnings per share, which fell 63% (annualized).
So we doubt that the market is looking to EPS for its main judge of the company's value. Therefore, we think it's worth considering other metrics as well.
The modest 1.5% dividend yield is unlikely to be propping up the share price. You can only imagine how long term shareholders feel about the declining revenue trend (slipping at 7.5% per year). What's clear is that historic earnings and revenue aren't matching up with the share price action, very well. So you might have to dig deeper to get a grasp of the situation
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
![earnings-and-revenue-growth](https://usnewsfile.futunn.com/pic/0-17732185-0-e3aa33c28cde714a04d81759d8e82839.png/big)
SHSE:603880 Earnings and Revenue Growth December 14th 2022
Take a more thorough look at Jiangsu Nanfang Medical's financial health with this free report on its balance sheet.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Jiangsu Nanfang Medical's TSR for the last 3 years was 35%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
A Different Perspective
It's nice to see that Jiangsu Nanfang Medical shareholders have received a total shareholder return of 15% over the last year. That's including the dividend. That certainly beats the loss of about 1.9% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Jiangsu Nanfang Medical better, we need to consider many other factors. Even so, be aware that Jiangsu Nanfang Medical is showing 3 warning signs in our investment analysis , you should know about...
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 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.
从股市获益的一个简单方法是购买指数基金。但如果你选择实力雄厚的个股,你就可以获得优异的回报。只要看一看江苏南方医疗股份有限公司。(上交所:603880),三年来上涨了33%,远远超过了18%的市场回报率(不包括股息)。然而,最近的回报没有那么令人印象深刻,该股去年的回报率仅为15%。
由于本周江苏南方医药的股东表现强劲,让我们来看看较长期基本面的走势。
查看我们对江苏南方医疗的最新分析
虽然有效市场假说继续被一些人传授,但事实证明,市场是过度反应的动态系统,投资者并不总是理性的。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。
在过去的三年里,江苏南方医疗未能实现每股收益的增长,按年率计算下降了63%。
因此,我们怀疑市场是否在指望每股收益作为其对公司价值的主要判断。因此,我们认为其他指标也值得考虑。
1.5%的适度股息收益率不太可能支撑股价。你只能想象长期股东对收入下降趋势(每年下滑7.5%)的感受。显而易见的是,历史收益和营收与股价走势并没有很好的匹配。因此,你可能需要更深入地调查,才能掌握情况
下图描述了收益和收入随时间的变化(通过单击图像来揭示确切的价值)。
![earnings-and-revenue-growth](https://usnewsfile.futunn.com/pic/0-17732185-0-e3aa33c28cde714a04d81759d8e82839.png/big)
上海证交所:603880收益和收入增长2022年12月14日
更透彻地审视江苏南方医疗的财务健康状况免费报告其资产负债表。
那股息呢?
除了衡量股价回报外,投资者还应考虑总股东回报(TSR)。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。可以说,TSR更全面地描绘了一只股票产生的回报。碰巧,江苏南方医疗最近3年的TSR为35%,超过了前面提到的股价回报。这在很大程度上是其股息支付的结果!
不同的视角
很高兴看到江苏南方医疗的股东在过去一年中获得了15%的总股东回报。这还包括股息。这当然超过了过去五年每年约1.9%的损失。我们通常更看重短期的长期表现,但最近的改善可能暗示着业务内部出现(积极的)拐点。跟踪股价的长期表现总是很有趣的。但要更好地了解江苏南方医疗,还需要考虑许多其他因素。即便如此,请注意江苏南方医疗正在展示我们的投资分析中的3个警告信号,你应该知道关于……
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。