The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Sino-Agri Leading Biosciences Co.,Ltd (SHSE:603970) which saw its share price drive 104% higher over five years. It's also up 9.6% in about a month. We note that Sino-Agri Leading BiosciencesLtd reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.
Since it's been a strong week for Sino-Agri Leading BiosciencesLtd shareholders, let's have a look at trend of the longer term fundamentals.
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.
Over half a decade, Sino-Agri Leading BiosciencesLtd managed to grow its earnings per share at 14% a year. So the EPS growth rate is rather close to the annualized share price gain of 15% per year. This indicates that investor sentiment towards the company has not changed a great deal. In fact, the share price seems to largely reflect the EPS growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It might be well worthwhile taking a look at our free report on Sino-Agri Leading BiosciencesLtd's earnings, revenue and cash flow.
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 incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Sino-Agri Leading BiosciencesLtd's TSR for the last 5 years was 119%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We're pleased to report that Sino-Agri Leading BiosciencesLtd shareholders have received a total shareholder return of 8.8% over one year. And that does include the dividend. However, the TSR over five years, coming in at 17% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand Sino-Agri Leading BiosciencesLtd better, we need to consider many other factors. For example, we've discovered 2 warning signs for Sino-Agri Leading BiosciencesLtd (1 is a bit concerning!) that you should be aware of before investing here.
We will like Sino-Agri Leading BiosciencesLtd 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 Chinese 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.