Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. To wit, the Xinhua Winshare Publishing and Media share price has climbed 82% in five years, easily topping the market return of 1.2% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 74% in the last year, including dividends.
Since it's been a strong week for Xinhua Winshare Publishing and Media 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. 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 five years of share price growth, Xinhua Winshare Publishing and Media achieved compound earnings per share (EPS) growth of 7.3% per year. This EPS growth is slower than the share price growth of 13% 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. That's not necessarily surprising considering the five-year track record of earnings growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
SEHK:811 Earnings Per Share Growth September 30th 2024
Dive deeper into Xinhua Winshare Publishing and Media's key metrics by checking this interactive graph of Xinhua Winshare Publishing and Media's earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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, Xinhua Winshare Publishing and Media's TSR for the last 5 years was 155%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
A Different Perspective
It's nice to see that Xinhua Winshare Publishing and Media shareholders have received a total shareholder return of 74% over the last year. That's including the dividend. That's better than the annualised return of 21% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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 example, we've discovered 1 warning sign for Xinhua Winshare Publishing and Media that you should be aware of before investing here.
We will like Xinhua Winshare Publishing and Media better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.
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.
株価収益だけでなく、投資家は総株主還元率（TSR）も考慮すべきです。株価収益は株価の変動のみを反映するのに対し、TSRには配当金の価値（再投資を前提とする）、割引資本調達や分割活動の利益も含まれます。配当金を支払っている株に対しては、TSRがより包括的な情報を提供すると言えます。実際、過去5年間の「Xinhua Winshare Publishing and Media」のTSRは155%で、先に言及した株価収益を上回っています。これは主に配当金支払いの結果です！
「Xinhua Winshare Publishing and Media」の株主が過去1年間で合計株主還元率74%を受け取ったことは嬉しいです。この中には配当金も含まれています。半世紀にわたる21%の年率収益よりも優れていることを意味し、最近は会社の状況が良くなっていることを示唆しています。最善の場合、これは実際のビジネスの勢いを示すかもしれず、今が深入りする絶好の機会かもしれません。長期にわたる株価をビジネスのパフォーマンスのプロキシとして見るのは興味深いことですが、本当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、「Xinhua Winshare Publishing and Media」で投資する前に注意すべき警告サイン1つを発見しました。
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。
During five years of share price growth, Xinhua Winshare Publishing and Media achieved compound earnings per share (EPS) growth of 7.3% per year. This EPS growth is slower than the share price growth of 13% 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. That's not necessarily surprising considering the five-year track record of earnings growth. 
株価の5年間の成長期間中、シンファ・ウィンシェア出版とメディアは年平均7.3%の複合EPS成長を達成しました。このEPS成長は同じ期間に年平均13%の株価成長よりも遅いです。したがって、市場がビジネスに対する評価を5年前よりも高く評価していると考えるのは当然です。5年間の収益成長の記録を考慮すると、それは必ずしも驚くべきことではありません。 
