China Yongda Automobile Service Holdings Co., Ltd. (HKG:3669) shareholders will be happy to see the share price has increased 11% in the last month.Meanwhile, until the end three Stock prices have fallen significantly over the years. Unfortunately, the stock price fell 73% during that period. So this improvement may be a real relief to some people. The fall may have been too much after all.
The recent 7.0% rally could be a positive sign of things to come, so let’s take a look at the historical fundamentals.
See our latest analysis for China Yongda Automobile Service Holdings.
Markets are powerful pricing mechanisms, but stock prices reflect not only underlying business performance but also investor sentiment. By comparing earnings per share (EPS) and share price changes over time, we can learn how investor attitudes to a company have changed over time.
Over the three years that the share price fell, China Yongda Automobile Service Holdings’ earnings per share (EPS) declined by 2.5% every year. This decline in EPS is slower than the 35% annual decline in the share price. Therefore, it is likely that the decline in EPS has disappointed the market and investors are hesitant to buy. This heightened vigilance is reflected in its fairly low P/E ratio of 4.92.
The company’s earnings per share (long-term) are depicted in the image below (click to see the exact numbers).
Learn more about China Yongda Automobiles Services Holdings’ key metrics by exploring this interactive graph of China Yongda Automobiles Services Holdings’ earnings, revenue and cash flow.
What will happen to the dividend?
As well as measuring share price return, investors should also consider total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often much higher than the share price return. Coincidentally, China Yongda Automobile Service Holdings’ TSR over the past three years was -67%, which is better than the share price return mentioned above. And there’s no kudos to speculating that dividend payments are the main explanation for the divergence.
different perspective
China Yongda Automobile Service Holdings shareholders are down 19% for the year (even including dividends), while the market itself is up 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year’s performance ended on a down note, with shareholders facing a total annual loss of 1.7% over five years. I know Baron Rothschild said investors should “buy when there’s blood on the streets,” but investors should first make sure they’re buying a quality business. Warns you that you need to confirm. I think it’s very interesting to look at stock price over the long term as an indicator of business performance. But to really gain insight, you need to consider other information as well. For example, let’s take a risk – China Yongda Automobile Service Holdings two warning signs I think you should know.
of course China Yongda Automobile Service Holdings may not be the best stock to buy.So you might want to see this free A collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.