Buying a low-cost index fund will get you the average market return. But in any diversified portfolio of stocks, you'll see some that fall short of the average. Unfortunately for shareholders, while the Hisense Home Appliances Group Co., Ltd. (SZSE:000921) share price is up 23% in the last three years, that falls short of the market return. At least the stock price is up over the last year, albeit only by 4.9%.
In light of the stock dropping 3.7% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive three-year return.
See our latest analysis for Hisense Home Appliances Group
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.
During the three years of share price growth, Hisense Home Appliances Group actually saw its earnings per share (EPS) drop 12% per year.
So we doubt that the market is looking to EPS for its main judge of the company's value. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.
Languishing at just 1.5%, we doubt the dividend is doing much to prop up the share price. It may well be that Hisense Home Appliances Group revenue growth rate of 28% over three years has convinced shareholders to believe in a brighter future. In that case, the company may be sacrificing current earnings per share to drive growth, and maybe shareholder's faith in better days ahead will be rewarded.
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:000921 Earnings and Revenue Growth August 27th 2022
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Hisense Home Appliances Group the TSR over the last 3 years was 32%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
It's nice to see that Hisense Home Appliances Group shareholders have received a total shareholder return of 6.5% over the last year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 5% per year), it would seem that the stock's performance has improved in recent times. 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. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Hisense Home Appliances Group you should know about.
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.
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.
购买低成本指数基金将为你带来平均市场回报。但在任何多元化的股票投资组合中,你都会看到一些低于平均水平的股票。对股东来说不幸的是,虽然海信家电集团有限公司。(SZSE:000921)股价在过去三年中上涨了23%,低于市场回报。至少,该公司股价在过去一年里有所上涨,尽管涨幅仅为4.9%。
鉴于该公司股价在过去一周下跌了3.7%,我们希望调查更长期的情况,看看基本面因素是否是该公司三年来正回报的驱动因素。
查看我们对海信家电集团的最新分析
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。通过比较每股收益(EPS)和股价随时间的变化,我们可以感受到投资者对一家公司的态度随着时间的推移发生了怎样的变化。
在股价增长的三年中,海信家电集团的每股收益(EPS)实际上每年下降12%。
因此,我们怀疑市场是否在指望每股收益作为其对公司价值的主要判断。由于每股收益的变化似乎与股价的变化没有相关性,因此值得看看其他指标。
股息仅为1.5%,我们怀疑股息对支撑股价起到了多大作用。海信家电集团三年来28%的营收增长率很可能让股东们相信了更光明的未来。在这种情况下,该公司可能会牺牲当前的每股收益来推动增长,或许股东对未来更好日子的信心将得到回报。
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)。
深交所:2022年8月27日收益和收入增长000921
你可以看到它的资产负债表是如何随着时间的推移而加强(或削弱)的免费交互式图形。
那股息呢?
除了衡量股价回报外,投资者还应考虑总股东回报(TSR)。TSR包括任何剥离或贴现融资的价值,以及任何股息,基于股息再投资的假设。可以说,TSR更全面地描绘了一只股票产生的回报。我们注意到,海信家电集团过去3年的TSR为32%,好于上面提到的股价回报。而且,猜测股息支付在很大程度上解释了这种差异是没有好处的!
不同的视角
很高兴看到海信家电集团股东在过去一年中获得了6.5%的总股东回报。当然,这包括股息。由于一年期的TSR好于五年期的TSR(后者的年收益率为5%),看起来该股的表现在最近有所改善。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。例如,考虑一下风险。每家公司都有它们,我们已经发现海信家电集团的2个警告标志你应该知道。
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。