In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in Datang International Power Generation Co., Ltd. (HKG:991), since the last five years saw the share price fall 46%. The falls have accelerated recently, with the share price down 34% in the last three months.
Since Datang International Power Generation has shed CN¥1.7b from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
See our latest analysis for Datang International Power Generation
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).
Over five years Datang International Power Generation's earnings per share dropped significantly, falling to a loss, with the share price also lower. At present it's hard to make valid comparisons between EPS and the share price. However, we can say we'd expect to see a falling share price in this scenario.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
SEHK:991 Earnings Per Share Growth December 12th 2022
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Datang International Power Generation's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
What About The Total Shareholder Return (TSR)?
We've already covered Datang International Power Generation's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Datang International Power Generation shareholders, and that cash payout explains why its total shareholder loss of 30%, over the last 5 years, isn't as bad as the share price return.
A Different Perspective
Datang International Power Generation shareholders are down 15% over twelve months, which isn't far from the market return of -14%. So last year was actually even worse than the last five years, which cost shareholders 5% per year. It will probably take a substantial improvement in the fundamental performance for the company to reverse this trend. 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 2 warning signs with Datang International Power Generation (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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.
為了證明挑選個股的努力是合理的,值得努力超越市場指數基金的回報。但主要的遊戲是找到足夠多的贏家來抵消輸家在這一點上一些股東可能會質疑他們對大唐國際發電有限責任公司(HKG:991),自過去五年股價下跌46%以來。股價最近加速下跌,在過去三個月裡下跌了34%。
由於大唐國際發電在過去7天裡市值縮水17億元人民幣,讓我們看看長期下跌是否受到了企業經濟的推動。
查看我們對大唐國際發電的最新分析
雖然市場是一種強大的定價機制,但股價反映的是投資者情緒,而不僅僅是潛在的企業表現。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。
五年來,大唐國際發電的每股收益大幅下降,出現虧損,股價也隨之走低。目前,很難將每股收益與股價進行有效的比較。然而,我們可以說,在這種情況下,我們預計會看到股價下跌。
下圖描述了EPS是如何隨著時間的推移而變化的(通過單擊圖像來揭示確切的值)。
聯交所:991每股盈利增長2022年12月12日
我們很高興地報告,這位首席執行官的薪酬比類似資本公司的大多數首席執行官都要低。但是,儘管CEO的薪酬總是值得檢查的,但真正重要的問題是,公司能否在未來實現收益增長。這免費如果你想進一步調查大唐國際發電的股票,關於大唐國際發電的收益、收入和現金流的互動報告是一個很好的起點。
那麼總股東回報(TSR)呢?
我們已經報道了大唐國際發電的股價走勢,但我們還應該提到它的總股東回報(TSR)。TSR試圖獲取股息的價值(就像它們被再投資一樣),以及向股東提供的任何剝離或折價融資。股息對大唐國際發電的股東來說確實是有益的,這種現金支付解釋了為什麼大唐國際發電在過去5年中30%的股東總損失沒有股價回報那麼糟糕。
不同的視角
大唐國際發電股份有限公司的股東在過去12個月裡下跌了15%,距離-14%的市場回報率不遠。因此,去年實際上比過去五年還要糟糕,過去五年股東每年損失5%。該公司可能需要基本面業績的大幅改善才能扭轉這一趨勢。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資訊。例如,考慮一下無處不在的投資風險幽靈。我們已經確定了兩個警告信號與大唐國際發電有限公司(至少有一家我們不太滿意)合作,瞭解它們應該是您投資過程的一部分。
如果你更願意看看另一家公司--一家財務狀況可能更好的公司--那麼不要錯過這一點免費已證明自己能夠實現盈利增長的公司名單。
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。