We're definitely into long term investing, but some companies are simply bad investments over any time frame. We don't wish catastrophic capital loss on anyone. Anyone who held FIT Hon Teng Limited (HKG:6088) for five years would be nursing their metaphorical wounds since the share price dropped 74% in that time. And some of the more recent buyers are probably worried, too, with the stock falling 59% in the last year. More recently, the share price has dropped a further 21% in a month.
Since FIT Hon Teng has shed HK$709m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
See our latest analysis for FIT Hon Teng
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.
During the five years over which the share price declined, FIT Hon Teng's earnings per share (EPS) dropped by 20% each year. This change in EPS is reasonably close to the 24% average annual decrease in the share price. This suggests that market participants have not changed their view of the company all that much. Rather, the share price has approximately tracked EPS growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
SEHK:6088 Earnings Per Share Growth January 31st 2024
Dive deeper into FIT Hon Teng's key metrics by checking this interactive graph of FIT Hon Teng's earnings, revenue and cash flow.
A Different Perspective
We regret to report that FIT Hon Teng shareholders are down 59% for the year. Unfortunately, that's worse than the broader market decline of 18%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 12% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand FIT Hon Teng better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for FIT Hon Teng you should know about.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong 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.
長期投資に取り組んでいますが、企業によっては時間の経過にかかわらず単に悪い投資である場合があります。誰にも大きな資本損失を被って欲しくありません。FIT Hon Teng Limited (HKG:6088)の株を5年間保有した人は、株価がその期間に74%下落したため、比喩的な傷を負っていることでしょう。そして、もっと最近の購入者の中には、株価が過去1年間に59%下落したため、心配している人もいるかもしれません。さらに最近、株価は1か月でさらに21%下落しました。
FIT Hon Tengが過去7日間でHK $ 709mの価値を失ったので、長期的な下落がビジネスの経済によって引き起こされたものかどうか確認しましょう。
FIT Hon Tengの最新の分析を確認してください
Benjamin Grahamを引用すると、「短期間は市場が投票機であり、長期間は重量計です。」 EPSと株価の変化を比較することで、時間の経過とともに投資家の企業に対する態度がどのように変化したかを感じることができます。
株価が下落した5年間の間、FIT Hon TengのEPSは年間20%減少しました。 EPSの変化は、株価の年間平均減少率24%にかなり近いです。これは、市場参加者が企業に対する見方をあまり変えていないことを示唆しています。むしろ、株価はEPSの成長をほぼ追跡しています。
FIT Hon Tengの収益、売上高、キャッシュフローの対話型グラフを確認して、より詳細に分析してください。
異なる視点
残念ながら、FIT Hon Tengの株主は今年59%下落しています。残念ながら、それは18%の市場全体の下落よりも悪いです。ただし、株価が広範な市場の不安に影響を受けている可能性があります。良い機会がある場合は、基本を注意深く見る価値があるかもしれません。残念ながら、去年のパフォーマンスは悪いランの締めくくりで、5年間で株主は年間12%の累積損失に直面しています。一般に、長期的な株価の弱さは悪い兆候である可能性がありますが、自己相反的な投資家は反転の可能性を期待して株式を調査するかもしれません。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。