The Five-year Shareholder Returns and Company Earnings Persist Lower as Health and Happiness (H&H) International Holdings (HKG:1112) Stock Falls a Further 7.1% in Past Week
Long term investing works well, but it doesn't always work for each individual stock. It hits us in the gut when we see fellow investors suffer a loss. Imagine if you held Health and Happiness (H&H) International Holdings Limited (HKG:1112) for half a decade as the share price tanked 78%. The falls have accelerated recently, with the share price down 12% in the last three months.
After losing 7.1% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
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, Health and Happiness (H&H) International Holdings' earnings per share (EPS) dropped by 7.4% each year. Readers should note that the share price has fallen faster than the EPS, at a rate of 26% per year, over the period. This implies that the market was previously too optimistic about the stock. The less favorable sentiment is reflected in its current P/E ratio of 9.96.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
SEHK:1112 Earnings Per Share Growth June 17th 2024
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. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Health and Happiness (H&H) International Holdings' TSR for the last 5 years was -73%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
While the broader market gained around 1.1% in the last year, Health and Happiness (H&H) International Holdings shareholders lost 1.9% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 12% per annum loss investors have suffered over the last half decade. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. 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. For instance, we've identified 3 warning signs for Health and Happiness (H&H) International Holdings (1 makes us a bit uncomfortable) that you should be aware of.
But note: Health and Happiness (H&H) International Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
新規買はしっかりと機能しますが、個々の株には必ずしもすべて当てはまるわけではありません。 投資家が損失を受けるのは辛いことです。 たとえば、Health and Happiness (H&H) International Holdings Limited (HKG:1112) を半十年保有して株価が78%下落した場合を想像してみてください。 最近の下落は加速しており、過去3か月間で株価は12%下落しています。
株価が下落した5年間にわたり、Health and Happiness (H&H) International Holdingsの1株当たり利益(EPS)は毎年7.4%減少しました。 読者は、株価が期間中に年率26%の割合でEPSよりも速く下落したことに注意する必要があります。 これは、市場がもともと株式について楽観的すぎたことを示しています。 より不利なセンチメントは、現在のP/E比率で反映されています。9.96。
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株価収益率は株価の変化だけを反映し、TSRには配当の価値(再投資されたと仮定)や割引キャピタルレイジングまたはスピンオフの利益も含まれます。 配当金を支払う株に対して、TSRはより完全な画像を提供すると言えます。 実際、過去5年間のHealth and Happiness (H&H) International HoldingsのTSRは-73%で、前述の株価リターンを上回っています。 配当金の支払いが大きく乱れることは予想できます。
広範囲な市場は昨年約1.1%成長しましたが、Health and Happiness (H&H) International Holdingsの株主は1.9%の損失を出しました(配当を含めても)。 良い株価も時には下落しますが、興味を持つ前にビジネスの基本的な指標の改善を見たいです。 ただし、昨年の損失は、過去半世紀に投資家が受けた年率12%の損失ほどは酷くありません。 株価はビジネスパフォーマンスの代理指標として長期的に見ることは非常に興味深いです。 しかし、真の洞察を得るには、他の情報も考慮する必要があります。 たとえば、私たちはHealth and Happiness (H&H) International Holdingsの警告サイン3つ(1つが不快に感じる)を特定しています。 そのことを把握しておく必要があります。
ただし、注意:Health and Happiness (H&H) International Holdingsは最良の買い物ではないかもしれません。 過去の収益成長(および今後の成長予測)を持つ興味深い企業の無料リストをのぞいてみてください。
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。