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.
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.
通過購買指數基金,投資者可以接近平均市場回報。但如果你以有吸引力的價格收購好企業,你的投資組合回報可能會超過平均市場回報。例如,華僑銀行股份有限公司(新加坡證券交易所股票代碼:O39)股價在過去三年中上漲了10%,顯然超過了市場約9.3%的跌幅(不包括股息)。然而,最近的回報沒有那麼令人印象深刻,包括股息在內,該股去年的回報率僅為2.7%。
事實證明,過去一週對華僑銀行投資者來説是有利可圖的,所以讓我們看看基本面因素是否推動了該公司三年的業績。
請看我們對華僑銀行的最新分析
雖然市場是一種強大的定價機制,但股價反映的是投資者情緒,而不僅僅是潛在的企業表現。考察市場情緒如何隨時間變化的一種方法是觀察一家公司的股價和每股收益(EPS)之間的相互作用。
華僑銀行能夠在三年內以每年0.8%的速度增長每股收益,推動股價走高。這一EPS增幅低於3%的股價年均增幅。這表明,在經歷了過去幾年的上漲後,市場對該股的看法變得更加樂觀。考慮到三年來盈利增長的記錄,這並不一定令人驚訝。
該公司的每股收益(在一段時間內)如下圖所示(點擊查看具體數字)。
新交所:O39每股收益增長2022年8月4日
也許很值得一看我們的免費華僑銀行收益、收入及現金流報告。
那股息呢?
重要的是要考慮任何給定股票的總股東回報以及股價回報。TSR包括任何剝離或貼現融資的價值,以及任何股息,基於股息再投資的假設。公平地説,TSR為支付股息的股票提供了更完整的圖景。以華僑銀行為例,過去3年的TSR為25%。這超過了我們之前提到的它的股價回報。該公司支付的股息因此提振了總計股東回報。
不同的視角
華僑銀行在過去12個月提供了2.7%的TSR。但這低於市場平均水平。如果我們回顧過去五年的情況,回報率甚至更高,連續五年的年回報率為5%。考慮到隨着時間的推移,市場對這一業務的持續積極反應,這很可能是一項值得關注的業務。我發現,把股價作為衡量企業業績的長期指標是非常有趣的。但為了真正獲得洞察力,我們還需要考慮其他信息。一個恰當的例子:我們發現了海外中國銀行業的2個警示標誌你應該知道,其中一個是有點令人不快的。
當然了,如果你把目光投向別處,你可能會發現這是一筆很棒的投資。所以讓我們來看看這個免費我們預計收益將會增長的公司名單。
請注意,本文引用的市場回報反映了目前在SG交易所交易的股票的市場加權平均回報。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。