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.
從股市獲益的一個簡單方法是購買指數基金。但如果你選擇實力雄厚的個股,你就可以獲得優異的回報。只要看一看江秀克南方醫療股份有限公司。(上交所:603880),三年來上漲了33%,遠遠超過了18%的市場回報率(不包括股息)。然而,最近的回報沒有那麼令人印象深刻,該股去年的回報率僅為15%。
由於本週江秀克南方醫藥的股東表現強勁,讓我們來看看較長期基本面的走勢。
查看我們對江秀克南方醫療的最新分析
雖然有效市場假說繼續被一些人傳授,但事實證明,市場是過度反應的動態系統,投資者並不總是理性的。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。
在過去的三年裡,江秀克南方醫療未能實現每股收益的增長,按年率計算下降了63%。
因此,我們懷疑市場是否在指望每股收益作為其對公司價值的主要判斷。因此,我們認為其他指標也值得考慮。
1.5%的適度股息收益率不太可能支撐股價。你只能想像長期股東對收入下降趨勢(每年下滑7.5%)的感受。顯而易見的是,歷史收益和營收與股價走勢並沒有很好的匹配。因此,你可能需要更深入地調查,才能掌握情況
下圖描述了收益和收入隨時間的變化(通過單擊圖像來揭示確切的價值)。
![earnings-and-revenue-growth](https://usnewsfile.futunn.com/pic/0-17732185-0-e3aa33c28cde714a04d81759d8e82839.png/big)
上海證交所:603880收益和收入增長2022年12月14日
更透徹地審視江秀克南方醫療的財務健康狀況免費報告其資產負債表。
那股息呢?
除了衡量股價回報外,投資者還應考慮總股東回報(TSR)。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。可以說,TSR更全面地描繪了一隻股票產生的回報。碰巧,江秀克南方醫療最近3年的TSR為35%,超過了前面提到的股價回報。這在很大程度上是其股息支付的結果!
不同的視角
很高興看到江秀克南方醫療的股東在過去一年中獲得了15%的總股東回報。這還包括股息。這當然超過了過去五年每年約1.9%的損失。我們通常更看重短期的長期表現,但最近的改善可能暗示著業務內部出現(積極的)拐點。跟蹤股價的長期表現總是很有趣的。但要更好地瞭解江秀克南方醫療,還需要考慮許多其他因素。即便如此,請注意江秀克南方醫療正在展示我們的投資分析中的3個警告信號,你應該知道關於……
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CN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。