Many investors define successful investing as beating the market average over the long term. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. We regret to report that long term Shandong Gold Mining Co., Ltd. (SHSE:600547) shareholders have had that experience, with the share price dropping 23% in three years, versus a market return of about 38%.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
Check out our latest analysis for Shandong Gold Mining
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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the three years that the share price fell, Shandong Gold Mining's earnings per share (EPS) dropped by 27% each year. This fall in the EPS is worse than the 8% compound annual share price fall. So, despite the prior disappointment, shareholders must have some confidence the situation will improve, longer term. With a P/E ratio of 178.88, it's fair to say the market sees a brighter future for the business.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
SHSE:600547 Earnings Per Share Growth August 5th 2022
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Shandong Gold Mining's earnings, revenue and cash flow.
A Different Perspective
It's good to see that Shandong Gold Mining has rewarded shareholders with a total shareholder return of 3.3% in the last twelve months. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 0.9%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Shandong Gold Mining (of which 1 is a bit unpleasant!) you should know about.
We will like Shandong Gold Mining 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 CN 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.
许多投资者将成功的投资定义为长期超过市场平均水平。但几乎可以肯定的是,有时你会买入低于市场平均回报率的股票。我们很遗憾地报告这一长期的山东黄金股份有限公司。(上海证券交易所:600547)股东有过这样的经历,股价在三年内下跌了23%,而市场回报率约为38%。
考虑到这一点,值得关注的是,该公司的潜在基本面是长期业绩的驱动力,还是存在一些差异。
看看我们对山东黄金的最新分析
用巴菲特的话说,“船只将在世界各地航行,但平坦的地球协会将蓬勃发展。市场上的价格和价值之间将继续存在巨大的差异……”一种不完美但简单的方法来考虑市场对一家公司的看法是如何改变的,那就是将每股收益(EPS)的变化与股价走势进行比较。
在股价下跌的三年里,山东黄金的每股收益(EPS)每年下降27%。每股收益的这一跌幅比8%的复合年度股价跌幅还要糟糕。因此,尽管之前令人失望,但从长远来看,股东们必须对情况会有所改善有一定的信心。在市盈率为178.88的情况下,公平地说,市场认为这项业务的前景更加光明。
下图描述了EPS是如何随着时间的推移而变化的(通过单击图像来揭示确切的值)。
上交所:2022年8月5日每股收益增长600547
可能值得注意的是,首席执行官的薪酬低于类似规模公司的中位数。关注首席执行官的薪酬总是值得的,但更重要的问题是,该公司是否会在未来几年实现盈利增长。也许很值得一看我们的免费山东黄金的收入、收入和现金流报告。
不同的视角
很高兴看到山东黄金在过去的12个月里给股东们带来了3.3%的总回报。当然,这包括股息。这一收益好于过去五年的年度TSR,后者为0.9%。因此,最近围绕该公司的情绪似乎一直是积极的。在最好的情况下,这可能暗示着一些真正的商业势头,意味着现在可能是深入研究的好时机。虽然值得考虑市场状况对股价可能产生的不同影响,但还有其他更重要的因素。比如风险。每家公司都有它们,我们已经发现山东黄金的3个警示标志(其中1个有点不愉快!)你应该知道。
如果我们看到一些大的内部收购,我们会更喜欢山东黄金。在我们等待的时候,看看这个免费最近有大量内幕收购的成长型公司名单。
请注意,本文引用的市场回报反映了目前在CN交易所交易的股票的市场加权平均回报。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。