Jiangxi Bank Co., Ltd. (HKG:1916) shareholders should be happy to see the share price up 13% in the last month. But only the myopic could ignore the astounding decline over three years. To wit, the share price sky-dived 81% in that time. So it sure is nice to see a bit of an improvement. Of course the real question is whether the business can sustain a turnaround. While a drop like that is definitely a body blow, money isn't as important as health and happiness.
While the stock has risen 8.4% 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 Jiangxi Bank
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).
Jiangxi Bank saw its EPS decline at a compound rate of 10% per year, over the last three years. The share price decline of 42% is actually steeper than the EPS slippage. So it's likely that the EPS decline has disappointed the market, leaving investors hesitant to buy. This increased caution is also evident in the rather low P/E ratio, which is sitting at 2.39.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
SEHK:1916 Earnings Per Share Growth September 20th 2022
Dive deeper into Jiangxi Bank's key metrics by checking this interactive graph of Jiangxi Bank's earnings, revenue and cash flow.
A Different Perspective
The last twelve months weren't great for Jiangxi Bank shares, which performed worse than the market, costing holders 72%, including dividends. The market shed around 21%, no doubt weighing on the stock price. Shareholders have lost 21% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Jiangxi Bank (at least 2 which don't sit too well with us) , and understanding them should be part of your investment process.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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.
江西银行股份有限公司(HKG:1916)股东应该很高兴看到股价在上个月上涨了13%。但只有近视者才能忽视三年来令人震惊的下降。换句话说,该公司股价在那段时间里暴跌了81%。因此,看到一些进步当然是件好事。当然,真正的问题是该公司能否持续扭亏为盈。虽然像这样的下降绝对是对身体的打击,但金钱并不像健康和幸福那么重要。
虽然该股在过去一周上涨了8.4%,但长期股东仍处于亏损状态,但让我们看看基本面能告诉我们什么。
查看我们对江西银行的最新分析
虽然有效市场假说继续被一些人传授,但事实证明,市场是过度反应的动态系统,投资者并不总是理性的。考察市场情绪如何随时间变化的一种方法是观察一家公司的股价和每股收益(EPS)之间的相互作用。
过去三年,江西银行的每股收益以每年10%的复合速度下降。42%的股价跌幅实际上比每股收益的下滑幅度更大。因此,很可能是每股收益的下降令市场失望,让投资者对买入犹豫不决。这种更加谨慎的态度也明显体现在相当低的市盈率上,目前为2.39倍。
该公司的每股收益(在一段时间内)如下图所示(点击查看具体数字)。
联交所:1916年9月20日每股收益增长
通过查看江西银行收益、收入和现金流的互动图表,更深入地了解江西银行的关键指标。
不同的视角
过去12个月,江西银行的股价表现不佳,表现逊于大盘,持股者损失了72%,其中包括股息。股市下跌了约21%,无疑拖累了股价。股东在过去三年里每年损失21%,因此股价在过去一年里跌幅变得更大;这是尚未解决的挑战的潜在症状。我们会对买入一家问题尚未解决的公司持谨慎态度,尽管一些投资者如果认为价格足够有吸引力,就会买入陷入困境的股票。我发现,把股价作为衡量企业业绩的长期指标是非常有趣的。但为了真正获得洞察力,我们还需要考虑其他信息。例如,考虑一下无处不在的投资风险幽灵。我们已经确定了三个警告信号与江西银行(至少有两家银行对我们不太满意)合作,了解他们应该是你投资过程的一部分。
对于那些想要找到赢得投资这免费最近有内幕收购的不断增长的公司名单可能就是合适的选择。
请注意,本文引用的市场回报反映了目前在香港交易所交易的股票的市场加权平均回报。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
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。