For many, the main point of investing is to generate higher returns than the overall market. But every investor is virtually certain to have both over-performing and under-performing stocks. So we wouldn't blame long term HK Electric Investments and HK Electric Investments Limited (HKG:2638) shareholders for doubting their decision to hold, with the stock down 41% over a half decade.

The recent uptick of 4.3% could be a positive sign of things to come, so let's take a look at historical fundamentals.

See our latest analysis for HK Electric Investments and HK Electric Investments

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.

Looking back five years, both HK Electric Investments and HK Electric Investments' share price and EPS declined; the latter at a rate of 1.7% per year. This reduction in EPS is less than the 10% annual reduction in the share price. This implies that the market is more cautious about the business these days.

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 HK Electric Investments and HK Electric Investments' key metrics by checking this interactive graph of HK Electric Investments and HK Electric Investments's earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for HK Electric Investments and HK Electric Investments the TSR over the last 5 years was -25%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

Although it hurts that HK Electric Investments and HK Electric Investments returned a loss of 3.2% in the last twelve months, the broader market was actually worse, returning a loss of 11%. Of far more concern is the 5% p.a. loss served to shareholders over the last five years. While the losses are slowing we doubt many shareholders are happy with the stock. It's always interesting to track share price performance over the longer term. But to understand HK Electric Investments and HK Electric Investments better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for HK Electric Investments and HK Electric Investments you should be aware of.

For those who like to find winning investments this free list of growing 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 Hong Kong exchanges.

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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.