If you love investing in stocks you're bound to buy some losers. But the long term shareholders of Winning Health Technology Group Co., Ltd. (SZSE:300253) have had an unfortunate run in the last three years. Regrettably, they have had to cope with a 54% drop in the share price over that period.
Since Winning Health Technology Group has shed CN¥811m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
View our latest analysis for Winning Health Technology Group
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Winning Health Technology Group saw its EPS decline at a compound rate of 29% per year, over the last three years. In comparison the 23% compound annual share price decline isn't as bad as the EPS drop-off. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in. This positive sentiment is also reflected in the generous P/E ratio of 135.35.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on Winning Health Technology Group's earnings, revenue and cash flow.
A Different Perspective
We regret to report that Winning Health Technology Group shareholders are down 12% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 5.2%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Winning Health Technology Group you should be aware of.
We will like Winning Health Technology Group better if we see some big insider buys. While we wait, check out this free list of growing companies 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 Chinese 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.
在過去三年中,Winning Health Technology Group的每股收益複合下降了29%。相比之下,23%的複合年股價下跌幅度沒有每股收益的下降那麼嚴重。因此,目前市場可能不太擔心每股收益的數字,或者此前可能已經將部分下跌定價了。這種積極情緒也反映在135.35的慷慨市盈率上。
該公司的每股收益(一段時間內)如下圖所示(點擊查看確切數字)。
可能值得一看我們關於Winning Health Technology Group收益、收入和現金流的免費報告。
不同的視角
我們遺憾地報告,Winning Health Technology Group的股東今年下跌了12%(甚至包括股息)。不幸的是,這比整個市場5.2%的跌幅還要嚴重。話雖如此,在下跌的市場中,一些股票不可避免地會被超賣。關鍵是要密切關注基本發展。不幸的是,去年的表現可能預示着尚未解決的挑戰,因爲它比過去五年中3%的年化虧損還要糟糕。我們意識到羅斯柴爾德男爵曾說過,投資者應該 “在街頭流血時買入”,但我們警告說,投資者應首先確保他們購買的是高質量的企業。儘管市場狀況可能對股價產生的不同影響值得考慮,但還有其他因素更爲重要。一個很好的例子:我們已經發現了Winning Health Technology Group的兩個警告信號,你應該注意。
如果我們看到一些重大的內幕收購,我們會更喜歡Winning Health Technology Group。在我們等待的同時,請查看這份免費清單,列出了最近有大量內幕收購的成長型公司。