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Investors one-year losses continue as Yeahka (HKG:9923) dips a further 5.6% this week, earnings continue to decline

Simply Wall St ·  Jul 15, 2022 18:45

Taking the occasional loss comes part and parcel with investing on the stock market. And unfortunately for Yeahka Limited (HKG:9923) shareholders, the stock is a lot lower today than it was a year ago. The share price has slid 59% in that time. Yeahka may have better days ahead, of course; we've only looked at a one year period. Furthermore, it's down 22% in about a quarter. That's not much fun for holders.

After losing 5.6% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

Check out our latest analysis for Yeahka

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

Unhappily, Yeahka had to report a 31% decline in EPS over the last year. This reduction in EPS is not as bad as the 59% share price fall. So it seems the market was too confident about the business, a year ago.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growthSEHK:9923 Earnings Per Share Growth July 15th 2022

We know that Yeahka has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Yeahka's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Yeahka shareholders are down 59% for the year, even worse than the market loss of 21%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 22% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Yeahka better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Yeahka , and understanding them should be part of your investment process.

We will like Yeahka 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 HK 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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