When we invest, we're generally looking for stocks that outperform the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. To wit, the C&D International Investment Group share price has climbed 61% in five years, easily topping the market decline of 19% (ignoring dividends).
Since it's been a strong week for C&D International Investment Group shareholders, let's have a look at trend of the longer term fundamentals.
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Over half a decade, C&D International Investment Group managed to grow its earnings per share at 3.4% a year. This EPS growth is slower than the share price growth of 10% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
SEHK:1908 Earnings Per Share Growth May 1st 2024
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for C&D International Investment Group the TSR over the last 5 years was 209%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
We regret to report that C&D International Investment Group shareholders are down 27% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 4.0%. 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. On the bright side, long term shareholders have made money, with a gain of 25% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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 C&D International Investment Group is showing 2 warning signs in our investment analysis , you should know about...
C&D International Investment Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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.
投資する場合、一般的には市場平均を上回る株式を探しています。アクティブな株式選びにはリスクが伴いますが(分散化が必要です)、超過利益をもたらすこともあります。C&D International Investment Group株価は、株式配当を除く市場下落率19%を軽々と上回る、5年間で61%上昇しました。
C&D International Investment Groupの株主にとって強い週だったので、長期的なファンダメンタルのトレンドを見てみましょう。
5年間で、C&D International Investment GroupはEPSの年平均成長率を3.4%に抑えました。このEPS成長率は同期間に毎年10%の株価成長率より遅れています。つまり、市場は5年前よりもこのビジネスに対して高い評価を持っていると思われます。 成長のトラックレコードを考えると、それはあまり驚くことではありません。
留意すべきは、この記事で引用されている市場リターンは、現在オーストラリア取引所で取引されている株式の市場加重平均リターンを反映しています。総株主収益株価収益株価収益TSRには、スピンオフまたはディスカウント資本調達の価値、および株式配当を再投資すると仮定した配当が含まれます。したがって、慷慨な配当を支払う企業に対して、TSRはしばしば株価収益よりもはるかに高くなります。 C&D International Investment Groupの5年間のTSRは209%で、上記の株価収益よりも良好です。そして、配当支払いがその違いを主に説明していると推測するのは賢明です!
C&D International Investment Groupの株主が株式配当を含めて1年間で27%減少していることを報告することを残念に思います。残念ながら、それは4.0%の広範な市場下落よりも悪いです。ただし、株式価格が広範な市場の不安に影響を受けた可能性があるだけです。ファンダメンタルを注視する価値があるかもしれません。長期的な株主は、半年間で年率25%の利益を上げています。基本的なデータが長期的な持続的な成長を示し続ける場合、現在の売却は検討に値する機会かもしれません。
C&D International Investment Groupは、インサイダーが購入している株式ではない唯一の銘柄です。勝利する投資を見つけたい人のために、最近インサイダーが購入した成長企業の無料リストを入手できるかもしれません。
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。