It's nice to see the Shenzhen JT Automation Equipment Co.,Ltd (SZSE:300400) share price up 15% in a week. But that doesn't change the fact that the returns over the last three years have been disappointing. Regrettably, the share price slid 57% in that period. So it is really good to see an improvement. While many would remain nervous, there could be further gains if the business can put its best foot forward.
Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline.
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).
Shenzhen JT Automation EquipmentLtd saw its EPS decline at a compound rate of 33% per year, over the last three years. In comparison the 25% compound annual share price decline isn't as bad as the EPS drop-off. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. This positive sentiment is also reflected in the generous P/E ratio of 71.55.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
Dive deeper into Shenzhen JT Automation EquipmentLtd's key metrics by checking this interactive graph of Shenzhen JT Automation EquipmentLtd's earnings, revenue and cash flow.
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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Shenzhen JT Automation EquipmentLtd, it has a TSR of -55% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Although it hurts that Shenzhen JT Automation EquipmentLtd returned a loss of 12% in the last twelve months, the broader market was actually worse, returning a loss of 17%. Given the total loss of 1.5% per year over five years, it seems returns have deteriorated in the last twelve months. Whilst Baron Rothschild does tell the investor "buy when there's blood in the streets, even if the blood is your own", buyers would need to examine the data carefully to be comfortable that the business itself is sound. It's always interesting to track share price performance over the longer term. But to understand Shenzhen JT Automation EquipmentLtd better, we need to consider many other factors. Take risks, for example - Shenzhen JT Automation EquipmentLtd has 5 warning signs (and 1 which is significant) we think you should know about.
For those who like to find winning investments this free list of undervalued 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 Chinese exchanges.
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一週間でShenzhen Jt Automation Equipment Co.,Ltd (SZSE:300400)の株価が15%上昇しているのは素晴らしいことですが、過去3年間のリターンが失望しているという事実は変わりません。残念ながら、この期間に株価は57%下落しました。したがって、改善が見られるのは本当に良いことです。多くの人が神経質になるかもしれませんが、ビジネスが最善の足を踏み出せば、さらなる利益があります。
Shenzhen Jt Automation EquipmentLtdは過去3年間に年率33%の割合でEPSが低下している一方で、株価の年間複合減少率25%はEPSの落ち込みほど悪くありません。これは過去のEPS低下にもかかわらず、市場が長期的な利益安定性に対する楽観的な見方を持ち続けていることを示しています。このポジティブな感情は、P/E比が71.55の寛大なものにも反映されています。
Shenzhen Jt Automation EquipmentLtdが過去12ヶ月間に損失を出したことは痛いですが、全般的な市場は実際には悪化し、17%の損失を出しています。5年間で年平均1.5%の総損失があるため、過去12ヶ月間にリターンが悪化したように思われます。Baron Rothschildは「街路で血が流れているときに買いなさい。たとえ血があなた自身のものであっても」と投資家に言いますが、ビジネスが健全であることに気づいてから、買いに踏み切る必要があります。株価のパフォーマンスを長期間追跡することは常に興味深いことです。ただし、Shenzhen Jt Automation EquipmentLtdをより理解するには、多くの他の要因を考慮する必要があります。たとえば、リスクを取る - Shenzhen Jt Automation EquipmentLtdには5つの警告サイン(1つは重要)があります。把握しておく必要があると考えます。
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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。