While it may not be enough for some shareholders, we think it is good to see the Ronglian Group Ltd. (SZSE:002642) share price up 30% in a single quarter. But don't envy holders -- looking back over 5 years the returns have been really bad. The share price has failed to impress anyone , down a sizable 64% during that time. So we're not so sure if the recent bounce should be celebrated. But it could be that the fall was overdone.
While the stock has risen 12% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
Check out our latest analysis for Ronglian Group
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.
Ronglian Group became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move.
Revenue is actually up 14% over the time period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
SZSE:002642 Earnings and Revenue Growth August 8th 2022
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
We're pleased to report that Ronglian Group shareholders have received a total shareholder return of 34% over one year. There's no doubt those recent returns are much better than the TSR loss of 10% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. Before forming an opinion on Ronglian Group you might want to consider these 3 valuation metrics.
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 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.
虽然这对一些股东来说可能还不够,但我们认为看到荣联集团有限公司(SZSE:002642)股价在一个季度内上涨30%。但不要羡慕持有者--回顾过去5年的情况,回报真的很糟糕。该公司股价未能给任何人留下深刻印象,在此期间大幅下跌了64%。因此,我们不太确定是否应该庆祝最近的反弹。但也可能是跌势过头了。
尽管该股在过去一周上涨了12%,但长期股东仍处于亏损状态,让我们看看基本面能告诉我们什么。
查看我们对荣联集团的最新分析
不可否认,市场有时是有效的,但价格并不总是反映潜在的商业表现。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。
荣联集团在过去五年内实现了盈利。大多数人会认为这是一件好事,所以看到股价下跌是有违常理的。其他指标或许能更好地解释股价走势。
这一时期的营收实际上增长了14%。对营收和收益进行更详细的审查,可能会解释股价低迷的原因,也可能解释不了;可能会有机会。
您可以在下图中看到收益和收入随时间的变化(单击图表查看确切的值)。
深圳证交所:002642收益和收入增长2022年8月8日
资产负债表的强健至关重要。也许很值得一看我们的免费报告其财务状况如何随着时间的推移而发生变化。
不同的视角
我们很高兴地报告,荣联集团股东在一年内获得了34%的总股东回报。毫无疑问,最近的回报率比TSR在五年内每年10%的损失要好得多。我们通常更看重短期的长期表现,但最近的改善可能暗示着业务内部出现(积极的)拐点。在对荣联集团形成看法之前,你可能需要考虑以下三个估值指标。
如果你更愿意看看另一家公司--一家财务状况可能更好的公司--那么不要错过这一点免费已证明自己能够实现盈利增长的公司名单。
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。