Stewart Information Services (NYSE:STC) Shareholders Notch a 15% CAGR Over 5 Years, yet Earnings Have Been Shrinking
Stewart Information Services (NYSE:STC) Shareholders Notch a 15% CAGR Over 5 Years, yet Earnings Have Been Shrinking
When you buy and hold a stock for the long term, you definitely want it to provide a positive return. But more than that, you probably want to see it rise more than the market average. But Stewart Information Services Corporation (NYSE:STC) has fallen short of that second goal, with a share price rise of 69% over five years, which is below the market return. However, more recent buyers should be happy with the increase of 53% over the last year.
当你长期持有股票时,你肯定希望它能提供正面回报。但更重要的是,你可能希望它的涨幅高于市场平均水平。但是,Stewart Information Services Corporation(NYSE:STC)未能实现这个目标,股价在五年内上涨了69%,低于市场回报率。但最近的买家对去年的涨幅53%应该感到高兴。
The past week has proven to be lucrative for Stewart Information Services investors, so let's see if fundamentals drove the company's five-year performance.
过去一周对Stewart Information Services的投资者来说非常赚钱,让我们看看基本面是否推动了公司的五年表现。
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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
虽然一些人仍然在教授高效市场假说,但已经证明市场是过度反应的动态系统,投资者不总是理性的。一种有缺陷但合理的评估公司情绪变化的方法是比较每股收益 (EPS) 与股价。
Stewart Information Services' earnings per share are down 4.3% per year, despite strong share price performance over five years.
尽管在五年的股价表现强劲,Stewart Information Services的每股收益每年下降4.3%。
So it's hard to argue that the earnings per share are the best metric to judge the company, as it may not be optimized for profits at this point. Therefore, it's worth taking a look at other metrics to try to understand the share price movements.
因此,很难认为每股收益是判断公司的最佳指标,因为它可能在此时未被优化以获取利润。因此,值得查看其他指标以尝试了解股价的动向。
In contrast revenue growth of 7.4% per year is probably viewed as evidence that Stewart Information Services is growing, a real positive. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment.
相比之下,每年7.4%的营业收入增长可能被视为Stewart Information Services正在增长的证据,这是一个真正的积极因素。目前,管理层非常可能将营业收入增长作为优先而不是每股收益增长。
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
你可以在下面的图片中看到收入和营业收入随时间的变化情况(单击图表可查看精确值)。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240712/0-91d8559c30567df4e0bed4277a6823cc-0-e5119f53c73af55420fc9d5f85ad99e2.png/big)
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
资产负债表强度至关重要。查看我们关于其财务状况如何随时间变化的免费报告可能很值得一看。
What About Dividends?
那么分红怎么样呢?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Stewart Information Services' TSR for the last 5 years was 98%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
在考虑投资回报时,考虑总股东回报率(TSR)和股价回报率之间的差异非常重要。TSR是一个收益率计算,考虑了现金分红的价值(假设任何分红是再投资的)以及任何折价发行股票和分拆的计算价值。事实上,Stewart Information Services在过去5年的TSR为98%,超过了前面提到的股价回报率。公司支付的股息因此提高了总股东回报率。
A Different Perspective
不同的观点
It's nice to see that Stewart Information Services shareholders have received a total shareholder return of 58% over the last year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 15%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Stewart Information Services is showing 2 warning signs in our investment analysis , you should know about...
很高兴看到Stewart Information Services的股东在过去一年里获得了58%的股东回报。 这也包括红利。 这种增益比五年的年度TSR要好,为15%。 因此,公司周围的情绪似乎最近一直是积极的。 考虑到股价动力依然强劲,看看这支股票可能是值得的,以免错过机会。 虽然考虑市场条件对股价的不同影响非常值得,但还有其他更重要的因素。 尽管如此,请注意,Stewart Information Services在我们的投资分析中显示了2个警告标志,您应该知道...
For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.
对于那些喜欢寻找获胜投资的人来说,最近有内部购买的低估公司免费列表可能是一个很好的选择。
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
请注意,本文所引述的市场回报反映了目前在美国交易所上市的股票的市场加权平均回报。
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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