When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example MGM China Holdings Limited (HKG:2282). Its share price is already up an impressive 103% in the last twelve months. The last week saw the share price soften some 4.3%. On the other hand, longer term shareholders have had a tougher run, with the stock falling 13% in three years.
Although MGM China Holdings has shed HK$1.6b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
View our latest analysis for MGM China Holdings
MGM China Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year MGM China Holdings saw its revenue grow by 60%. That's a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 103% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
MGM China Holdings is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.
A Different Perspective
It's good to see that MGM China Holdings has rewarded shareholders with a total shareholder return of 103% in the last twelve months. 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. It's always interesting to track share price performance over the longer term. But to understand MGM China Holdings better, we need to consider many other factors. For example, we've discovered 2 warning signs for MGM China Holdings that you should be aware of before investing here.
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 Hong Kong 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.
企業の株式を購入する際には、株価がゼロに下落する可能性が常にあります。しかし、適切なビジネスを選んで株式を購入すれば、損失よりも多くの利益を得ることができます。例えば、MGM China Holdings Limited (HKG:2282)を見てみましょう。過去12か月で株価はすでに驚くべき103%上昇しました。先週、株価は4.3%程度下落しました。一方、長期の株主は3年間で株価が13%下落しました。
MGM China Holdingsは今週時価総額から160億香港ドルを失っていますが、より長期的な基本的なトレンドを見て、リターンがどのように生み出されたかを見てみましょう。
MGM China Holdingsの最新分析をご覧ください
MGM China Holdingsは現在収益性がないため、ほとんどのアナリストは、株式があるビジネスがどれだけ速く成長しているかを把握するために、売上成長を注視する傾向があります。収益性のない企業の株主は通常、強い売上成長を期待しています。一部の企業は、収益性を先送りしてより速い売上成長を実現することに積極的ですが、その場合、良好なトップライン成長が期待されます。
過去1年間でMGM China Holdingsの売上は60%成長しました。これは、ほとんどの赤字企業よりも大きな成長です。同時に、市場は注目し、株価が103%急騰しました。強い売上成長を見ることができるのは素晴らしいことですが、維持可能かどうかは疑問です。株価が急騰したことは楽観的な兆候ですので、ハイプが少し落ち着いた後に購入者にとってより良い機会があるかもしれません。
MGM China Holdingsはよく知られた株式であり、多くのアナリストがカバーしているため、将来の成長について洞察力があると思われます。私たちはかなりの数のアナリストの予測を持っているので、コンセンサスの見通しを示すこの無料のチャートをチェックする価値があります。
異なる視点
過去12か月間にMGM China Holdingsは株主に103%の総株主リターンを提供していることを見るのは良いことです。過去半世紀で約4%の損失を出しましたが、私たちは通常、短期的なパフォーマンスよりも長期的なパフォーマンスの方に重点を置きますが、最近の改善はビジネス内の(肯定的な)転換点を示唆しているかもしれません。株価パフォーマンスを長期的に追跡することは常に興味深いものですが、MGM China Holdingsを理解するには多くの他の要因を考慮する必要があります。例えば、ここで投資する前に知っておくべき2つの警告事項があります。