The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on a lighter note, a good company can see its share price rise well over 100%. Long term COSCO SHIPPING Holdings Co., Ltd. (HKG:1919) shareholders would be well aware of this, since the stock is up 203% in five years. In contrast, the stock has fallen 9.3% in the last 30 days. We note that the broader market is down 0.5% in the last month, and this may have impacted COSCO SHIPPING Holdings' share price.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Over half a decade, COSCO SHIPPING Holdings managed to grow its earnings per share at 107% a year. This EPS growth is higher than the 25% average annual increase in the share price. Therefore, it seems the market has become relatively pessimistic about the company. This cautious sentiment is reflected in its (fairly low) P/E ratio of 3.42.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It is of course excellent to see how COSCO SHIPPING Holdings has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling COSCO SHIPPING Holdings stock, you should check out this FREE detailed report on its balance sheet.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, COSCO SHIPPING Holdings' TSR for the last 5 years was 457%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that COSCO SHIPPING Holdings has rewarded shareholders with a total shareholder return of 14% in the last twelve months. And that does include the dividend. However, that falls short of the 41% TSR per annum it has made for shareholders, each year, over five years. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. 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. Take risks, for example - COSCO SHIPPING Holdings has 3 warning signs (and 1 which is potentially serious) we think you should know about.

Of course COSCO SHIPPING Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.