As an investor its worth striving to ensure your overall portfolio beats the market average. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long term SPIC Industry-Finance Holdings Co., Ltd. (SZSE:000958) shareholders have had that experience, with the share price dropping 18% in three years, versus a market return of about 27%.
While the last three years has been tough for SPIC Industry-Finance Holdings shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.
Check out our latest analysis for SPIC Industry-Finance Holdings
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 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.
Although the share price is down over three years, SPIC Industry-Finance Holdings actually managed to grow EPS by 5.2% per year in that time. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Alternatively, growth expectations may have been unreasonable in the past.
It's worth taking a look at other metrics, because the EPS growth doesn't seem to match with the falling share price.
We think that the revenue decline over three years, at a rate of 23% per year, probably had some shareholders looking to sell. And that's not surprising, since it seems unlikely that EPS growth can continue for long in the absence of revenue growth.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
![earnings-and-revenue-growth](https://usnewsfile.futunn.com/pic/0-17397341-0-8dda0923eb979b0138cd1670bf595fca.png/big)
SZSE:000958 Earnings and Revenue Growth December 4th 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. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for SPIC Industry-Finance Holdings the TSR over the last 3 years was -15%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Although it hurts that SPIC Industry-Finance Holdings returned a loss of 8.7% 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 1.8% 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'. 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. For instance, we've identified 1 warning sign for SPIC Industry-Finance Holdings that you should be aware of.
We will like SPIC Industry-Finance Holdings 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.
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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.
作爲投資者,值得努力確保您的整體投資組合超過市場平均水平。但是在任何投資組合中,都可能有一些股票未達到該基準。從長遠來看,我們很遺憾地向大家報告 國家電投產融控股有限公司 (SZSE: 000958) 股東們也有過這樣的經歷,股價在三年內下跌了18%,而市場回報率約爲27%。
儘管過去三年對SPIC工業金融控股的股東來說是艱難的,但上週顯示出了前景的跡象。因此,讓我們看一下長期基本面,看看它們是否是負回報的驅動力。
查看我們對SPIC產融控股的最新分析
儘管一些人繼續教導高效市場假說,但事實證明,市場是反應過度的動態系統,投資者並不總是理性的。考慮市場對公司的看法發生了怎樣的變化的一種不完美但簡單的方法是將每股收益(EPS)的變化與股價走勢進行比較。
儘管股價在三年內下跌,但在此期間,SPIC工業金融控股公司實際上設法使每股收益每年增長5.2%。這真是個難題,表明可能有一些東西暫時提振了股價。或者,過去的增長預期可能不合理。
值得一看其他指標,因爲每股收益的增長似乎與股價的下跌不符。
我們認爲,三年來收入以每年23%的速度下降,可能使一些股東希望出售。這並不奇怪,因爲在沒有收入增長的情況下,每股收益增長似乎不太可能持續很長時間。
公司的收入和收益(隨着時間的推移)如下圖所示(點擊查看確切數字)。
![earnings-and-revenue-growth](https://usnewsfile.futunn.com/pic/0-17397341-0-8dda0923eb979b0138cd1670bf595fca.png/big)
深交所:000958 2022 年 12 月 4 日收益和收入增長
資產負債表的實力至關重要。可能值得一看我們的 免費的 報告其財務狀況如何隨着時間的推移而變化。
那股息呢?
重要的是要考慮任何給定股票的股東總回報率和股價回報率。股價回報僅反映股價的變化,而股息回報率則包括股息的價值(假設它們被再投資)以及任何貼現融資或分拆的收益。可以公平地說,TSR更全面地描繪了支付股息的股票。我們注意到,SPIC Industry-Finance Holdings在過去3年中的總回報率爲-15%,好於上述股價回報率。而且,猜測股息支付在很大程度上解釋了分歧是沒有道理的!
不同的視角
儘管SPIC Industroy-Finance Holdings在過去十二個月中回報了8.7%的虧損令人痛心,但整個市場實際上更糟,虧損了17%。不幸的是,去年的表現可能表明挑戰懸而未決,因爲它比過去五年中1.8%的年化虧損還要糟糕。儘管一些投資者擅長收購陷入困境(但仍被低估)的公司,但不要忘記巴菲特說,“轉機很少會轉機”。我發現從長遠來看,將股價視爲業務表現的代表非常有趣。但是,要真正獲得洞察力,我們還需要考慮其他信息。例如,我們已經確定了 國家電投產融控股有 1 個警告信號 你應該知道的。
如果我們看到一些大規模的內幕收購,我們會更喜歡SPIC工業金融控股公司。在我們等待的時候,看看這個 免費的 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。
對這篇文章有反饋嗎?對內容感到擔憂? 取得聯繫 直接和我們聯繫。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St 的這篇文章本質上是一般性的。 我們僅使用公正的方法提供基於歷史數據和分析師預測的評論,我們的文章無意提供財務建議。 它不構成買入或賣出任何股票的建議,也沒有考慮您的目標或財務狀況。我們的目標是爲您提供由基本面數據驅動的長期重點分析。請注意,我們的分析可能未將最新的價格敏感型公司公告或定性材料考慮在內。簡而言之,華爾街對上述任何股票都沒有頭寸。