By buying an index fund, investors can approximate the average market return. But if you choose individual stocks with prowess, you can make superior returns. For example, the Weihai Huadong Automation Co., Ltd (SZSE:002248) share price is up 40% in the last three years, clearly besting the market return of around 16% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 2.5%.
Since it's been a strong week for Weihai Huadong Automation shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for Weihai Huadong Automation
While Weihai Huadong Automation made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.
In the last 3 years Weihai Huadong Automation saw its revenue grow at 25% per year. That's much better than most loss-making companies. The share price rise of 12% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at Weihai Huadong Automation. If the company is trending towards profitability then it could be very interesting.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
SZSE:002248 Earnings and Revenue Growth December 15th 2022
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
We're pleased to report that Weihai Huadong Automation shareholders have received a total shareholder return of 2.5% over one year. Having said that, the five-year TSR of 7% a year, is even better. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand Weihai Huadong Automation better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Weihai Huadong Automation , and understanding them should be part of your investment process.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CN 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.
通過購買指數基金,投資者可以接近平均市場回報。但如果你選擇實力雄厚的個股,你就可以獲得優異的回報。例如,威海華東自動化有限公司(SZSE:002248)股價在過去三年中上漲了40%,顯然超過了約16%的市場回報率(不包括股息)。另一方面,最近的回報並不是很好,股東僅上漲了2.5%。
由於本週威海華東自動化的股東表現強勁,讓我們來看看較長期基本面的走勢。
查看我們對威海華東自動化的最新分析
雖然威海華東自動化實現了小幅盈利,但在去年,我們認為市場目前可能更關注營收增長。一般來說,我們認為這類公司更類似於虧損股票,因為實際利潤如此之低。如果沒有不斷增長的收入,很難相信未來會有更有利可圖的未來。
在過去的三年裡,威海華東自動化的收入以每年25%的速度增長。這比大多數虧損的公司要好得多。在這段時間裡,股價以每年12%的速度上漲是令人高興的,考慮到收入的增長,這種增長似乎是合理的。如果是這樣的話,現在可能是仔細看看威海華東自動化的時候了。如果該公司正在走向盈利,那麼這可能會非常有趣。
下圖顯示了收益和收入隨時間的變化情況(如果您點擊該圖,您可以看到更多詳細資訊)。
深圳證券交易所:002248收益和收入增長2022年12月15日
資產負債表的強健至關重要。也許很值得一看我們的免費報告其財務狀況如何隨著時間的推移而發生變化。
不同的視角
我們很高興地報告,威海華東自動化的股東在一年的時間裡獲得了2.5%的總股東回報。話雖如此,每年7%的五年期TSR更好。潛在買家可能會覺得他們錯過了預期的機會,這是可以理解的,但業務仍有可能仍然全速運轉。跟蹤股價的長期表現總是很有趣的。但要更好地理解威海華東自動化,我們還需要考慮許多其他因素。例如,考慮一下無處不在的投資風險幽靈。我們已經確定了三個警告信號與威海華東自動化合作,瞭解它們應該是您投資過程的一部分。
如果你喜歡和管理層一起買股票,那麼你可能會喜歡這本書免費公司名單。(提示:內部人士一直在買入這些股票)。
請注意,本文引用的市場回報反映了目前在CN交易所交易的股票的市場加權平均回報。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。