By buying an index fund, investors can approximate the average market return. But if you choose individual stocks with prowess, you can make superior returns. For example, the Weihai Huadong Automation Co., Ltd (SZSE:002248) share price is up 40% in the last three years, clearly besting the market return of around 16% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 2.5%.
Since it's been a strong week for Weihai Huadong Automation shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for Weihai Huadong Automation
While Weihai Huadong Automation made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.
In the last 3 years Weihai Huadong Automation saw its revenue grow at 25% per year. That's much better than most loss-making companies. The share price rise of 12% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at Weihai Huadong Automation. If the company is trending towards profitability then it could be very interesting.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
SZSE:002248 Earnings and Revenue Growth December 15th 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 Weihai Huadong Automation shareholders have received a total shareholder return of 2.5% over one year. Having said that, the five-year TSR of 7% a year, is even better. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand Weihai Huadong Automation better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Weihai Huadong Automation , and understanding them should be part of your investment process.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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.
通过购买指数基金,投资者可以接近平均市场回报。但如果你选择实力雄厚的个股,你就可以获得优异的回报。例如,威海华东自动化有限公司(SZSE:002248)股价在过去三年中上涨了40%,显然超过了约16%的市场回报率(不包括股息)。另一方面,最近的回报并不是很好,股东仅上涨了2.5%。
由于本周威海华东自动化的股东表现强劲,让我们来看看较长期基本面的走势。
查看我们对威海华东自动化的最新分析
虽然威海华东自动化实现了小幅盈利,但在去年,我们认为市场目前可能更关注营收增长。一般来说,我们认为这类公司更类似于亏损股票,因为实际利润如此之低。如果没有不断增长的收入,很难相信未来会有更有利可图的未来。
在过去的三年里,威海华东自动化的收入以每年25%的速度增长。这比大多数亏损的公司要好得多。在这段时间里,股价以每年12%的速度上涨是令人高兴的,考虑到收入的增长,这种增长似乎是合理的。如果是这样的话,现在可能是仔细看看威海华东自动化的时候了。如果该公司正在走向盈利,那么这可能会非常有趣。
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)。
深圳证券交易所:002248收益和收入增长2022年12月15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,威海华东自动化的股东在一年的时间里获得了2.5%的总股东回报。话虽如此,每年7%的五年期TSR更好。潜在买家可能会觉得他们错过了预期的机会,这是可以理解的,但业务仍有可能仍然全速运转。跟踪股价的长期表现总是很有趣的。但要更好地理解威海华东自动化,我们还需要考虑许多其他因素。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威海华东自动化合作,了解它们应该是您投资过程的一部分。
如果你喜欢和管理层一起买股票,那么你可能会喜欢这本书免费公司名单。(提示:内部人士一直在买入这些股票)。
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。
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。