By buying an index fund, you can roughly match the market return with ease. But if you choose individual stocks with prowess, you can make superior returns. Just take a look at Guangdong Biolight Meditech Co., Ltd. (SZSE:300246), which is up 26%, over three years, soundly beating the market return of 21% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 6.9% , including dividends .
Since it's been a strong week for Guangdong Biolight Meditech shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for Guangdong Biolight Meditech
We don't think that Guangdong Biolight Meditech's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.
Over the last three years Guangdong Biolight Meditech has grown its revenue at 7.2% annually. That's not a very high growth rate considering it doesn't make profits. In that time the share price is up 8% per year, which is not unreasonable given the revenue gorwth. Ultimately, the important thing is whether the company is trending to profitability. In this sort of situation it can be worth putting the stock on your watchlist. If it can become profitable, then even moderate revenue growth could grow profits quickly.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
SZSE:300246 Earnings and Revenue Growth November 19th 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.
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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Guangdong Biolight Meditech the TSR over the last 3 years was 32%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
It's good to see that Guangdong Biolight Meditech has rewarded shareholders with a total shareholder return of 6.9% in the last twelve months. Of course, that includes the dividend. That certainly beats the loss of about 4% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. To that end, you should learn about the 4 warning signs we've spotted with Guangdong Biolight Meditech (including 1 which is a bit unpleasant) .
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 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.
通過購買指數基金,你可以輕鬆地大致匹配市場回報。但如果你選擇實力雄厚的個股,你就可以獲得優異的回報。只要看一看廣東博萊特醫療科技有限公司(上證所:300246),三年來上漲了26%,遠遠超過了21%的市場回報率(不包括股息)。另一方面,最近的回報率並不是很好,包括股息在內,股東的回報率僅為6.9%。
由於這一週對廣東生物科技的股東來説是強勁的一週,讓我們來看看較長期基本面的走勢。
查看我們對廣東碧光醫療科技的最新分析
我們認為,目前市場並不完全關注廣東生物之光醫療科技公司過去12個月的適度盈利。我們認為收入可能是更好的指引。一般來説,我們會把這樣的股票和虧損的公司放在一起考慮,原因很簡單,因為利潤的總量太低了。如果沒有不斷增長的收入,很難相信未來會有更有利可圖的未來。
在過去的三年裏,廣東生物之光醫療科技的收入以每年7.2%的速度增長。考慮到它沒有盈利,這並不是一個很高的增長率。在此期間,該公司股價每年上漲8%,考慮到收入的巨大增長,這並不是不合理的。歸根結底,重要的是該公司是否正在走向盈利。在這種情況下,將這隻股票放在你的觀察名單上是值得的。如果它能夠實現盈利,那麼即使是温和的收入增長也可能迅速增長利潤。
該公司的收入和收益(隨着時間的推移)如下圖所示(點擊查看具體數字)。
深圳證交所:300246收益和收入增長2022年11月19日
資產負債表的強健至關重要。也許很值得一看我們的免費報告其財務狀況如何隨着時間的推移而發生變化。
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。公平地説,TSR為支付股息的股票提供了更完整的圖景。我們注意到,廣東碧光醫療科技過去3年的總回報率為32%,好於上述股價回報率。這在很大程度上是其股息支付的結果!
不同的視角
令人欣慰的是,在過去的12個月裏,廣東生物之光醫療科技以6.9%的總股東回報回報了股東。當然,這包括股息。這當然超過了過去五年每年約4%的損失。我們通常更看重短期的長期表現,但最近的改善可能暗示着業務內部出現(積極的)拐點。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。為此,您應該瞭解4個警示標誌我們已經發現了廣東Biollight Meditech(包括1個有點令人不快的)。
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。