By buying an index fund, investors can approximate the average market return. But if you choose individual stocks with prowess, you can make superior returns. For example, Henan Qingshuiyuan Technology CO.,Ltd (SZSE:300437) shareholders have seen the share price rise 81% over three years, well in excess of the market return (18%, not including dividends).
In light of the stock dropping 7.7% 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 three-year return.
See our latest analysis for Henan Qingshuiyuan TechnologyLtd
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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Henan Qingshuiyuan TechnologyLtd became profitable within the last three years. So we would expect a higher share price over the period.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
SZSE:300437 Earnings Per Share Growth December 13th 2022
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on Henan Qingshuiyuan TechnologyLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Henan Qingshuiyuan TechnologyLtd the TSR over the last 3 years was 84%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
We regret to report that Henan Qingshuiyuan TechnologyLtd shareholders are down 38% 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 5%, 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Henan Qingshuiyuan TechnologyLtd (at least 1 which is potentially serious) , and understanding them should be part of your investment process.
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 CN 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.
通過購買指數基金,投資者可以接近平均市場回報。但如果你選擇實力雄厚的個股,你就可以獲得優異的回報。例如,河南清水源科技有限公司(SZSE:300437)股東看到股價在三年內上漲了81%,遠遠超過了市場回報率(18%,不包括股息)。
鑑於該公司股價在過去一週下跌了7.7%,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三年來正回報的驅動因素。
查看我們對河南清水源科技有限公司的最新分析
用巴菲特的話說,“船隻將在世界各地航行,但平坦的地球協會將蓬勃發展。市場上的價格和價值之間將繼續存在巨大的差異……”評估圍繞一家公司的情緒變化的一個有缺陷但合理的方法是將每股收益(EPS)與股價進行比較。
河南清水源科技有限公司在過去三年內實現了盈利。因此,我們預計這段時間內股價會更高。
您可以在下面看到EPS是如何隨著時間的推移而變化的(通過單擊圖像來了解確切的值)。
深交所:2022年12月13日每股收益增長300437
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。關注首席執行官的薪酬總是值得的,但更重要的問題是,該公司是否會在未來幾年實現盈利增長。這免費如果你想進一步調查該股,河南清水源科技有限公司的收益、收入和現金流互動報告是一個很好的起點。
那股息呢?
重要的是要考慮任何給定股票的總股東回報以及股價回報。TSR是一種回報計算,計入了現金股息的價值(假設收到的任何股息都進行了再投資),以及任何貼現融資和剝離的計算價值。可以說,TSR更全面地描繪了一隻股票產生的回報。我們注意到,河南清水源科技有限公司過去3年的總回報率為84%,好於上述股價回報率。這在很大程度上是其股息支付的結果!
不同的視角
我們遺憾地報告,河南清水源科技有限公司的股東今年以來下跌了38%(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5%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。雖然值得考慮市場狀況對股價可能產生的不同影響,但還有其他更重要的因素。例如,考慮一下無處不在的投資風險幽靈。我們已經確定了三個警告信號與河南清水源科技有限公司(至少1家,這可能是嚴重的)合作,瞭解他們應該是你投資過程的一部分。
對於那些想要找到贏得投資這免費最近有內幕收購的不斷增長的公司名單可能就是合適的選擇。
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。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
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。