The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. For example, the Jinhong Fashion Group Co.,Ltd. (SHSE:603518) share price has soared 136% in the last three years. How nice for those who held the stock! On top of that, the share price is up 34% in about a quarter.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
Check out our latest analysis for Jinhong Fashion GroupLtd
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).
Jinhong Fashion GroupLtd became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
It is of course excellent to see how Jinhong Fashion GroupLtd has grown profits over the years, but the future is more important for shareholders. This free interactive report on Jinhong Fashion GroupLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Jinhong Fashion GroupLtd, it has a TSR of 139% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
We're pleased to report that Jinhong Fashion GroupLtd shareholders have received a total shareholder return of 61% over one year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.7% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Jinhong Fashion GroupLtd better, we need to consider many other factors. Take risks, for example - Jinhong Fashion GroupLtd has 2 warning signs we think you should be aware of.
But note: Jinhong Fashion GroupLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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.
株式を購入した後で、最悪な結果(レバレッジをかけない場合)としては、投資したお金をすべて失うことです。しかし、本当に素晴らしい企業の株式を購入すると、投資額を2倍以上にできます。例えば、Jinhong Fashion Group Co.,Ltd. (SHSE:603518)の株価は過去3年間で136%上昇しました。株主にとっては嬉しい限りです!さらに、株価は約14分の1で34%上昇しています。この前週の強い上昇を受けて、改善されたファンダメンタルズによって長期的なリターンが推進されているかどうか、確認する価値があります。Jinhong Fashion GroupLtd の最新の分析をチェックしてください。シェアに対する投資リターンを見る場合、短期的には市場の「投票」が重要ですが、長期的には市場の「秤」が重要です。「秤」を量る方法の1つは、EPS(1株当たりの利益)と株価の相関関係を見ることです。時間の経過とともに市場のセンチメントがどのように変化したかを調べるには、EPSがどのように推移したかを確認することができます(画像をクリックすると、詳細を見ることができます)。Jinhong Fashion GroupLtdは、過去3年間で利益を上げました。この重要なマイルストーンの重要性から考えても、株価が強く上昇したことは驚くことではありません。以下の図は、EPSが時間とともにどのように推移したかを示しています。
SHSE:603518 Earnings Per Share Growth January 16th 2024
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。