When we invest, we're generally looking for stocks that outperform the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. To wit, the Zoomlion Heavy Industry Science and Technology share price has climbed 28% in five years, easily topping the market return of 8.2% (ignoring dividends).
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
Check out our latest analysis for Zoomlion Heavy Industry Science and Technology
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 last half decade, Zoomlion Heavy Industry Science and Technology became profitable. That would generally be considered a positive, so we'd expect the share price to be up. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. Indeed, the Zoomlion Heavy Industry Science and Technology share price has gained 10% in three years. Meanwhile, EPS is up 18% per year. This EPS growth is higher than the 3% average annual increase in the share price over the same three years. Therefore, it seems the market has moderated its expectations for growth, somewhat. This cautious sentiment is reflected in its (fairly low) P/E ratio of 10.74.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
SZSE:000157 Earnings Per Share Growth August 24th 2022
It might be well worthwhile taking a look at our free report on Zoomlion Heavy Industry Science and Technology's earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Zoomlion Heavy Industry Science and Technology the TSR over the last 5 years was 58%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We regret to report that Zoomlion Heavy Industry Science and Technology shareholders are down 22% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 8.5%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 10%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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. Take risks, for example - Zoomlion Heavy Industry Science and Technology has 1 warning sign we think you should be aware of.
We will like Zoomlion Heavy Industry Science and Technology better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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.
當我們投資時,我們通常會尋找表現優於市場平均水平的股票。事實是,如果你以合適的價格收購質量好的企業,你可以獲得巨大的收益。換句話説,中聯重科的股價在五年內攀升了28%,輕鬆超過了8.2%的市場回報率(不考慮股息)。
讓我們來看看較長期的基本基本面,看看它們是否與股東回報一致。
看看我們對中聯重科的最新分析
本傑明·格雷厄姆(Benjamin Graham)的原話是:短期內,市場是一臺投票機,但從長遠來看,它是一臺稱重機。通過比較每股收益(EPS)和股價隨時間的變化,我們可以感受到投資者對一家公司的態度隨着時間的推移發生了怎樣的變化。
在過去的五年裏,中聯重科實現了盈利。這通常會被認為是積極的,所以我們預計股價會上漲。考慮到該公司三年前實現了盈利,但不是五年前,過去三年的股價回報也值得一看。事實上,中聯重科的股價在三年內上漲了10%。與此同時,每股收益以每年18%的速度增長。這一每股收益增長高於同樣三年來股價平均每年3%的增幅。因此,市場似乎在一定程度上降低了對增長的預期。這種謹慎的情緒反映在(相當低的)市盈率10.74。
該公司的每股收益(在一段時間內)如下圖所示(點擊查看具體數字)。
上交所:2022年8月24日每股收益增長000157
也許很值得一看我們的免費中聯重科的收入、收入和現金流報告。
那股息呢?
重要的是要考慮任何給定股票的總股東回報以及股價回報。TSR包括任何剝離或貼現融資的價值,以及任何股息,基於股息再投資的假設。因此,對於支付豐厚股息的公司來説,TSR往往比股價回報高得多。我們注意到,中聯重科在過去5年的總回報率為58%,好於上文提到的股價回報率。該公司支付的股息因此提振了總計股東回報。
不同的視角
我們遺憾地報告,中聯重科的股東今年以來下跌了22%(即使包括股息)。不幸的是,這比大盤8.5%的跌幅還要糟糕。話雖如此,在下跌的市場中,一些股票不可避免地會被超賣。關鍵是要密切關注基本面的發展。較長期的投資者不會如此沮喪,因為他們在五年內每年會獲得10%的收益。最近的拋售可能是一個機會,因此可能值得查看基本面數據,以尋找長期增長趨勢的跡象。雖然值得考慮市場狀況對股價可能產生的不同影響,但還有其他更重要的因素。以冒險為例-中聯重科有1個警告標誌我們認為你應該意識到。
如果我們看到一些大的內部收購,我們會更喜歡中聯重科。在我們等待的時候,看看這個免費最近有大量內幕收購的成長型公司名單。
請注意,本文引用的市場回報反映了目前在CN交易所交易的股票的市場加權平均回報。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。