Zhejiang Starry Pharmaceutical Co.,Ltd. (SHSE:603520) shareholders have seen the share price descend 11% over the month. But that doesn't change the fact that the returns over the last five years have been pleasing. Its return of 77% has certainly bested the market return! Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 58% decline over the last twelve months.
In light of the stock dropping 6.3% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return.
See our latest analysis for Zhejiang Starry PharmaceuticalLtd
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 five years of share price growth, Zhejiang Starry PharmaceuticalLtd achieved compound earnings per share (EPS) growth of 7.4% per year. This EPS growth is slower than the share price growth of 12% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 51.72.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
SHSE:603520 Earnings Per Share Growth December 20th 2022
It might be well worthwhile taking a look at our free report on Zhejiang Starry PharmaceuticalLtd's earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. In the case of Zhejiang Starry PharmaceuticalLtd, it has a TSR of 87% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
We regret to report that Zhejiang Starry PharmaceuticalLtd shareholders are down 57% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 17%. 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 13%, 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. 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 Zhejiang Starry PharmaceuticalLtd (including 2 which are concerning) .
We will like Zhejiang Starry PharmaceuticalLtd 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.
浙江星瑞藥業有限公司。(上海證券交易所:603520)股東們眼睜睜看著股價在這個月裡下跌了11%。但這並不能改變過去五年回報一直令人滿意的事實。它77%的回報率肯定超過了市場回報率!不幸的是,並不是所有的股東都會長期持有它,所以請考慮一下那些在過去12個月中陷入58%跌幅的人。
鑑於該公司股價在過去一週下跌了6.3%,我們希望調查更長期的情況,看看基本面因素是否是該公司五年來正回報的驅動因素。
查看我們對浙江星瑞製藥有限公司的最新分析
不可否認,市場有時是有效的,但價格並不總是反映潛在的商業表現。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著時間的推移發生了怎樣的變化。
在五年的股價增長中,浙江星瑞製藥有限公司實現了每股收益(EPS)每年7.4%的復合增長。這一每股收益的增長慢於同期股價每年12%的增長。因此,可以公平地認為,市場對這項業務的看法比五年前更高。考慮到五年來盈利增長的記錄,這並不一定令人驚訝。這種有利的情緒反映在其(相當樂觀的)本益比為51.72。
下圖顯示了EPS是如何隨著時間的推移進行跟蹤的(如果您點擊該圖像,您可以看到更多詳細資訊)。
上海證交所:2022年12月20日每股收益增長603520
也許很值得一看我們的免費浙江星瑞製藥有限公司收益、收入和現金流報告。
那股息呢?
除了衡量股價回報外,投資者還應考慮總股東回報(TSR)。雖然股價回報只反映股價的變動,但TSR包括股息的價值(假設股息再投資),以及任何折價集資或分拆所帶來的利益。公平地說,TSR為支付股息的股票提供了更完整的圖景。以浙江星瑞製藥有限公司為例,它在過去5年的TSR為87%。這超過了我們之前提到的它的股價回報。而且,猜測股息支付在很大程度上解釋了這種差異是沒有好處的!
不同的視角
我們遺憾地報告,浙江星瑞製藥有限公司的股東今年以來下降了57%(即使包括股息)。不幸的是,這比大盤17%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13%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。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。為此,您應該瞭解4個警示標誌我們已經發現了浙江星瑞製藥有限公司(包括2家相關公司)。
如果我們看到一些大的內部收購,我們會更喜歡浙江星瑞製藥有限公司。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。
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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。