While Bosideng International Holdings Limited (HKG:3998) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 16% in the last quarter. On the bright side the returns have been quite good over the last half decade. It has returned a market beating 53% in that time.
Since the stock has added HK$1.8b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
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).
During five years of share price growth, Bosideng International Holdings achieved compound earnings per share (EPS) growth of 25% per year. This EPS growth is higher than the 9% average annual increase in the share price. Therefore, it seems the market has become relatively pessimistic about the company.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that Bosideng International Holdings has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Bosideng International Holdings will grow revenue in the future.
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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Bosideng International Holdings' TSR for the last 5 years was 86%, 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
We're pleased to report that Bosideng International Holdings shareholders have received a total shareholder return of 17% over one year. Of course, that includes the dividend. That's better than the annualised return of 13% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Bosideng International Holdings you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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
Bosideng International Holdings Limited(HKG:3998)の株主は一般的には満足しているでしょうが、株価は最近あまり良くありませんでした。直近の四半期で株価が16%下落しました。明るい面では、過去半世紀でかなり良いリターンを出しています。その期間に市場を上回る53%のリターンを示しました。
任意の株式については、株主総還元率と株価還元率を考慮することが重要です。 TSRには、株主に配当が再投資されているという仮定に基づき、分離や割引資本調達の価値、および配当の価値が組み込まれます。議論の余地はありますが、TSRは株式の生成されたリターンをより包括的に示しています。実際、Bosideng International Holdingsの過去5年間のTSRは86%でした。これは先程述べた株価還元率を上回っています。そして、配当支払いがその差異を大部分で説明していることは容易に想像がつくでしょう。
報告できることとして、Bosideng International Holdingsの株主は1年間で総合株主還元率として17%を受け取りました。もちろん、それには配当も含まれます。これは、過去半世紀の年間リターン13%を上回り、それは最近会社が好調であることを示唆しています。株価モメンタムが強い状況が続いているため、チャンスを見逃さないように株をもう少し詳しく調べる価値があるかもしれません。事業パフォーマンスの代理として、長期の株価を見ることは非常に興味深いです。しかし真の洞察を得るためには、他の情報も考慮する必要があります。たとえばリスクを考慮してください。すべての会社にはリスクがあり、Bosideng International Holdingsには2つの警告サインがあります。知っておくべきです。
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。
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。