It's easy to match the overall market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Unfortunately the Boai NKY Medical Holdings Ltd. (SZSE:300109) share price slid 29% over twelve months. That's disappointing when you consider the market declined 19%. At least the damage isn't so bad if you look at the last three years, since the stock is down 8.5% in that time. The falls have accelerated recently, with the share price down 24% in the last three months.
After losing 7.0% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).
Even though the Boai NKY Medical Holdings share price is down over the year, its EPS actually improved. It could be that the share price was previously over-hyped.
It's fair to say that the share price does not seem to be reflecting the EPS growth. So it's well worth checking out some other metrics, too.
We don't see any weakness in the Boai NKY Medical Holdings' dividend so the steady payout can't really explain the share price drop. From what we can see, revenue is pretty flat, so that doesn't really explain the share price drop. Of course, it could simply be that it simply fell short of the market consensus expectations.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
SZSE:300109 Earnings and Revenue Growth July 25th 2024
Take a more thorough look at Boai NKY Medical Holdings' financial health with this free report on its balance sheet.
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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Boai NKY Medical Holdings the TSR over the last 1 year was -25%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
While the broader market lost about 19% in the twelve months, Boai NKY Medical Holdings shareholders did even worse, losing 25% (even including dividends). 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. Longer term investors wouldn't be so upset, since they would have made 1.6%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Boai NKY Medical Holdings better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Boai NKY Medical Holdings , and understanding them should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
インデックスファンドを買うことで、総合市場リターンに追随することは簡単です。アクティブな投資家は、市場を大きくアウトパフォームする株式を買おうとしますが、その過程でアンダーパフォーマンスのリスクを負います。残念なことに、Boai NKY Medical Holdings Ltd.(SZSE:300109)の株価は過去12か月で29%下落しました。市場が19%下落したと考えるとがっかりです。少なくとも、株価はこの期間の過去3年間を見ると8.5%下落しているので、被害はそれほど悪くありません。最近では、株価は過去3か月で24%下落しています。
投資リターンを考える際には、総株主リターン(TSR)と株価リターンの違いを考慮することが重要です。TSRには、分割や資本調達割引などの価値、および再投資された配当を前提とした配当金が含まれます。そのため、慷慨深い配当金を支払う企業にとっては、TSRが株価リターンよりも高くなることがよくあります。Boai NKY Medical Holdingsについては、過去1年間のTSRは-25%で、前述の株価リターンよりも良好でした。これは、配当支払いの結果として主に生じたものです。
広範な市場は12か月間で約19%の損失を出しましたが、Boai NKY Medical Holdingsの株主は、配当金を含めて25%の損失を出しました。それにもかかわらず、市場が下落している中でいくつかの株式がオーバーセールされることは不可避です。カギは、基本的な開発を見ていることです。長期投資家は、5年間で年間1.6%のリターンを得ることができたため、あまり不満に思う必要はありません。最近の売り込みが機会である可能性があるため、長期的な成長トレンドの兆候があるかどうか、基本データをチェックする価値があるかもしれません。長期的な株価パフォーマンスを追跡するのは常に興味深いことです。しかし、Boai NKY Medical Holdingsを理解するには、他の多くの要因を考慮する必要があります。例えば、投資リスクの常に存在する幽霊を考慮してください。私たちはBoai NKY Medical Holdingsについて1つの警告サインを特定しており、それらを理解することはあなたの投資プロセスの一部であるべきです。
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。
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。