For many, the main point of investing is to generate higher returns than the overall market. But in any portfolio, there will be mixed results between individual stocks. At this point some shareholders may be questioning their investment in Wuxi Rural Commercial Bank Co.,Ltd (SHSE:600908), since the last five years saw the share price fall 37%.
Since Wuxi Rural Commercial BankLtd has shed CN¥577m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
Check out our latest analysis for Wuxi Rural Commercial BankLtd
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 unfortunate half decade during which the share price slipped, Wuxi Rural Commercial BankLtd actually saw its earnings per share (EPS) improve by 12% per year. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Or possibly, the market was previously very optimistic, so the stock has disappointed, despite improving EPS.
Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock.
Revenue is actually up 8.7% 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.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
SHSE:600908 Earnings and Revenue Growth October 26th 2022
We know that Wuxi Rural Commercial BankLtd has improved its bottom line lately, but what does the future have in store? So we recommend checking out this free report showing consensus forecasts
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 is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Wuxi Rural Commercial BankLtd's TSR for the last 5 years was -26%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Although it hurts that Wuxi Rural Commercial BankLtd returned a loss of 8.1% in the last twelve months, the broader market was actually worse, returning a loss of 17%. Unfortunately, last year's performance may indicate unresolved challenges, given that it's worse than the annualised loss of 5% over the last half decade. While some investors do well specializing in buying companies that are struggling (but nonetheless undervalued), don't forget that Buffett said that 'turnarounds seldom turn'. 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. Case in point: We've spotted 1 warning sign for Wuxi Rural Commercial BankLtd you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are 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.
对许多人来说,投资的主要目的是创造比整体市场更高的回报。但在任何投资组合中,个股之间的结果都会喜忧参半。在这一点上,一些股东可能会质疑他们在无锡农村商业银行股份有限公司(上交所:600908),自过去五年以来,股价下跌了37%。
由于无锡农村商业银行股份有限公司在过去7天里市值缩水5.77亿元人民币,让我们看看长期下跌是否受到了企业经济的推动。
查看我们对无锡农村商业银行有限公司的最新分析
本杰明·格雷厄姆(Benjamin Graham)的原话是:短期内,市场是一台投票机,但从长远来看,它是一台称重机。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。
不幸的是,在股价下滑的五年里,无锡农村商业银行的每股收益(EPS)以每年12%的速度增长。考虑到股价的反应,人们可能会怀疑,每股收益不是这段时间内业务表现的良好指南(可能是因为一次性的亏损或收益)。也有可能,此前市场非常乐观,因此尽管每股收益有所改善,但该股仍令人失望。
由于每股收益增长率和股价增长率之间的鲜明对比,我们倾向于通过其他指标来了解围绕股票不断变化的市场情绪。
这一时期的营收实际增长了8.7%。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。
下图显示了收益和收入随时间的变化情况(如果您点击该图,您可以看到更多详细信息)。
上海证交所:600908收益和收入增长2022年10月26日
我们知道无锡农村商业银行最近提高了利润,但未来会是什么样子呢?因此,我们建议您查看以下内容免费显示共识预测的报告
那股息呢?
在考察投资回报时,重要的是要考虑到股东总回报(TSR)和股价回报。TSR是一种回报计算,计入了现金股息的价值(假设收到的任何股息都进行了再投资),以及任何贴现融资和剥离的计算价值。公平地说,TSR为支付股息的股票提供了更完整的图景。恰好,无锡农村商业银行过去5年的TSR为-26%,超过了前面提到的股价回报率。该公司支付的股息因此提振了总计股东回报。
不同的视角
尽管无锡农村商业银行在过去12个月里亏损8.1%令人痛心,但大盘实际上更糟糕,亏损17%。不幸的是,去年的表现可能预示着尚未解决的挑战,因为它比过去五年5%的年化损失更糟糕。虽然一些投资者擅长买入那些陷入困境(但估值仍然被低估)的公司,但不要忘记巴菲特曾说过,扭亏为盈的情况很少出现转机。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。一个恰当的例子:我们发现了无锡农村商业银行有限公司1个警示标志你应该意识到。
如果你像我一样,你会的不想怀念这一切吗?免费内部人士正在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。