Xinyi Glass Holdings Limited (HKG:868) shareholders might be concerned after seeing the share price drop 16% in the last quarter. But in stark contrast, the returns over the last half decade have impressed. It's fair to say most would be happy with 114% the gain in that time. We think it's more important to dwell on the long term returns than the short term returns. Of course, that doesn't necessarily mean it's cheap now. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 43% decline over the last twelve months.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
Check out our latest analysis for Xinyi Glass Holdings
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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, Xinyi Glass Holdings achieved compound earnings per share (EPS) growth of 22% per year. This EPS growth is higher than the 16% average annual increase in the share price. Therefore, it seems the market has become relatively pessimistic about the company. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.67.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
SEHK:868 Earnings Per Share Growth August 19th 2022
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Xinyi Glass Holdings' TSR for the last 5 years was 181%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
We regret to report that Xinyi Glass Holdings shareholders are down 39% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 16%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 23% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Xinyi Glass Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Xinyi Glass Holdings .
Xinyi Glass Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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.
信义玻璃(一千)控股有限公司(HKG:868)股东在看到上个季度股价下跌16%后可能会感到担忧。但与之形成鲜明对比的是,过去五年的回报令人印象深刻。公平地说,大多数人会对这段时间内114%的收益感到满意。我们认为,关注长期回报比关注短期回报更重要。当然,这并不一定意味着它现在很便宜。不幸的是,并不是所有的股东都会长期持有它,所以请考虑一下那些在过去12个月中陷入43%跌幅的人。
因此,让我们评估一下过去5年的基本基本面,看看它们是否与股东回报同步。
查看我们对信义玻璃(一千)控股的最新分析
虽然市场是一种强大的定价机制,但股价反映的是投资者情绪,而不仅仅是潜在的企业表现。通过比较每股收益(EPS)和股价随时间的变化,我们可以感受到投资者对一家公司的态度随着时间的推移发生了怎样的变化。
在股价增长的五年中,信义玻璃(一千)控股实现了每股收益(EPS)年均22%的复合增长。这一EPS增幅高于16%的股价年均增幅。因此,市场似乎对该公司变得相对悲观。这种谨慎的情绪反映在(相当低的)市盈率6.67。
下图显示了EPS是如何随着时间的推移进行跟踪的(如果您点击该图像,您可以看到更多详细信息)。
联交所:868每股盈利增长2022年8月19日
可能值得注意的是,我们在上个季度看到了大量的内幕收购,我们认为这是一个积极的因素。另一方面,我们认为收入和收益趋势是衡量业务的更有意义的指标。在买卖股票之前,我们总是建议仔细检查一下历史增长趋势,可在此处找到。
那股息呢?
重要的是要考虑任何给定股票的总股东回报以及股价回报。虽然股价回报只反映股价的变动,但TSR包括股息的价值(假设股息再投资),以及任何折价集资或分拆所带来的利益。因此,对于支付丰厚股息的公司来说,TSR往往比股价回报高得多。碰巧,信义玻璃(一千)控股最近5年的总回报率为181%,超过了前面提到的股价回报。而且,猜测股息支付在很大程度上解释了这种差异是没有好处的!
不同的视角
我们遗憾地报告,信义玻璃(一千)控股的股东今年以来下跌了39%(即使包括股息)。不幸的是,这比大盘16%的跌幅还要糟糕。然而,这可能只是因为股价受到了更广泛的市场紧张情绪的影响。也许有必要关注基本面,以防出现良机。从好的方面来看,长期股东已经赚到了钱,过去五年的年回报率为23%。如果基本面数据继续显示长期可持续增长,当前的抛售可能是一个值得考虑的机会。跟踪股价的长期表现总是很有趣的。但要更好地理解信义玻璃(一千)控股,我们还需要考虑许多其他因素。为此,您应该意识到1个警告标志我们已经发现了信义玻璃(一千)控股公司。
信义玻璃(一千)控股并不是业内人士买入的唯一一只股票。对于那些想要找到赢得投资这免费最近有内幕收购的不断增长的公司名单可能就是合适的选择。
请注意,本文引用的市场回报反映了目前在香港交易所交易的股票的市场加权平均回报。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。