The main aim of stock picking is to find the market-beating stocks. But every investor is virtually certain to have both over-performing and under-performing stocks. At this point some shareholders may be questioning their investment in Hang Lung Group Limited (HKG:10), since the last five years saw the share price fall 52%. On top of that, the share price is down 5.5% in the last week.
After losing 5.5% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
Check out our latest analysis for Hang Lung Group
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.
Looking back five years, both Hang Lung Group's share price and EPS declined; the latter at a rate of 10% per year. This reduction in EPS is less than the 14% annual reduction in the share price. This implies that the market is more cautious about the business these days. The low P/E ratio of 7.40 further reflects this reticence.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
SEHK:10 Earnings Per Share Growth December 21st 2022
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Hang Lung Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Hang Lung Group's TSR for the last 5 years was -40%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
While it's never nice to take a loss, Hang Lung Group shareholders can take comfort that , including dividends,their trailing twelve month loss of 9.7% wasn't as bad as the market loss of around 12%. Unfortunately, last year's performance may indicate unresolved challenges, given that it's worse than the annualised loss of 7% over the last half decade. While some investors do well specializing in buying companies that are struggling (but nonetheless undervalued), don't forget that Buffett said that 'turnarounds seldom turn'. 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 Hang Lung Group you should be aware of, and 1 of them is a bit unpleasant.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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.
选股的主要目的是找到击败市场的股票。但几乎可以肯定,每个投资者都会同时拥有表现超额和表现不佳的股票。此时,一些股东可能会质疑他们在以下方面的投资 恒隆集团有限公司 (HKG: 10),自过去五年股价下跌52%以来。最重要的是,上周股价下跌了5.5%。
在上周下跌5.5%之后,值得研究该公司的基本面,看看我们可以从过去的表现中推断出什么。
查看我们对恒隆集团的最新分析
用本杰明·格雷厄姆的话来说:从短期来看,市场是一台投票机器,但从长远来看,它是一台称重机。通过比较每股收益(EPS)和一段时间内的股价变化,我们可以了解投资者对公司的态度是如何随着时间的推移而变化的。
回顾五年,恒隆集团的股价和每股收益均有所下降;后者每年下降10%。每股收益的下降幅度小于股价每年14%的降幅。这意味着如今市场对这项业务更加谨慎。7.40的低市盈率进一步反映了这种沉默。
该公司的每股收益(随着时间的推移)如下图所示(点击查看确切数字)。
联交所:10 2022 年 12 月 21 日每股收益增长
我们认为,内部人士在去年进行了大量收购,这是积极的。话虽如此,大多数人认为收益和收入增长趋势是更有意义的业务指南。这个 免费的 如果你想进一步调查恒隆集团的收益、收入和现金流,那么关于恒隆集团的收益、收入和现金流的互动报告是一个不错的起点。
那股息呢?
除了衡量股价回报外,投资者还应考虑股东总回报(TSR)。股东总回报率是一种回报计算方法,它考虑了现金分红的价值(假设收到的任何股息都是再投资)以及任何折扣资本筹集和分拆的计算值。可以公平地说,TSR更全面地描述了支付股息的股票。碰巧的是,恒隆集团过去5年的股东总回报率为-40%,超过了前面提到的股价回报率。而且,猜测股息支付在很大程度上解释了这种分歧是没有好处的!
不同的视角
虽然亏损从来都不是一件好事,但恒隆集团的股东可以放心,包括股息在内,他们过去十二个月9.7%的亏损没有12%左右的市场亏损那么严重。不幸的是,去年的表现可能表明存在未解决的挑战,因为这比过去五年7%的年化亏损还要糟糕。尽管一些投资者在收购陷入困境(但仍然被低估了)的公司方面表现不错,但别忘了巴菲特说过 “转机很少转机”。我觉得从长远来看股价作为业务表现的代表非常有趣。但是,要真正获得见解,我们也需要考虑其他信息。一个很好的例子:我们发现了 恒隆集团的两个警告标志 你应该知道,其中一个有点不愉快。
还有很多其他公司有内部人士买入股票。你可能这样做 不 想错过这个 免费的 内部人士正在收购的成长型公司名单。
请注意,本文引用的市场回报反映了目前在香港交易所交易的股票的市场加权平均回报。
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Simply Wall St 的这篇文章本质上是一般性的。 我们仅使用不偏不倚的方法根据历史数据和分析师预测提供评论,我们的文章并非旨在提供财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能未将最新的价格敏感型公司公告或定性材料考虑在内。简而言之,华尔街对上述任何股票都没有头寸。