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.
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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.
江西銀行股份有限公司(HKG:1916)股東應該很高興看到股價在上個月上漲了13%。但只有近視者才能忽視三年來令人震驚的下降。換句話説,該公司股價在那段時間裏暴跌了81%。因此,看到一些進步當然是件好事。當然,真正的問題是該公司能否持續扭虧為盈。雖然像這樣的下降絕對是對身體的打擊,但金錢並不像健康和幸福那麼重要。
雖然該股在過去一週上漲了8.4%,但長期股東仍處於虧損狀態,但讓我們看看基本面能告訴我們什麼。
查看我們對江西銀行的最新分析
雖然有效市場假説繼續被一些人傳授,但事實證明,市場是過度反應的動態系統,投資者並不總是理性的。考察市場情緒如何隨時間變化的一種方法是觀察一家公司的股價和每股收益(EPS)之間的相互作用。
過去三年,江西銀行的每股收益以每年10%的複合速度下降。42%的股價跌幅實際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場失望,讓投資者對買入猶豫不決。這種更加謹慎的態度也明顯體現在相當低的市盈率上,目前為2.39倍。
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)。
聯交所:1916年9月20日每股收益增長
通過查看江西銀行收益、收入和現金流的互動圖表,更深入地瞭解江西銀行的關鍵指標。
不同的視角
過去12個月,江西銀行的股價表現不佳,表現遜於大盤,持股者損失了72%,其中包括股息。股市下跌了約21%,無疑拖累了股價。股東在過去三年裏每年損失21%,因此股價在過去一年裏跌幅變得更大;這是尚未解決的挑戰的潛在症狀。我們會對買入一家問題尚未解決的公司持謹慎態度,儘管一些投資者如果認為價格足夠有吸引力,就會買入陷入困境的股票。我發現,把股價作為衡量企業業績的長期指標是非常有趣的。但為了真正獲得洞察力,我們還需要考慮其他信息。例如,考慮一下無處不在的投資風險幽靈。我們已經確定了三個警告信號與江西銀行(至少有兩家銀行對我們不太滿意)合作,瞭解他們應該是你投資過程的一部分。
對於那些想要找到贏得投資這免費最近有內幕收購的不斷增長的公司名單可能就是合適的選擇。
請注意,本文引用的市場回報反映了目前在香港交易所交易的股票的市場加權平均回報。
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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。