The truth is, if you invest long enough, you’ll eventually end up with some losing stocks. However, long-term shareholders Geely Automobile Holding Co., Ltd. (HKG:175) The past three years have been disappointing. Unfortunately, the company had to deal with a 68% drop in stock price over this period. And with the share price down 28% in the last year, we doubt many shareholders are happy. The decline has accelerated recently, with shares down 14% in the past three months.
Next, let’s look at the company’s fundamentals to see if long-term shareholder returns are in line with the performance of the underlying business.
Check out our latest analysis for Geely Automobile Holdings.
In Buffett’s words, “Ships will sail around the world, but a flat-Earth society will thrive.” There will continue to be a wide discrepancy between prices and values in the marketplace. ..” One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
Over the three years that the share price fell, Geely Automobile Holding’s earnings per share (EPS) declined by 10% every year. The 32% share price decline is actually more steep than the EPS slippage. So it seems like the market used to have too much confidence in this business.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that Geely Automobile Holdings has improved its earnings recently, but will it grow? free A report showing analyst revenue forecasts can help determine whether EPS growth is sustainable.
different perspective
Unfortunately, Geely Automobile Holdings shareholders are down 26% for the year (even including dividends). Unfortunately, this is a worse situation than his 12% decline in the overall market. However, it is also possible that the stock price is simply being affected by broader market fluctuations. It might be worth looking at the basics in case a good opportunity presents itself. Unfortunately, last year’s performance ended on a down note, with shareholders facing a total annual loss of 7% over five years. Generally speaking, long-term stock price weakness can be a bad sign, but contrarian investors may want to research the stock in hopes of a turnaround. 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. For example, consider the ever-present fear of investment risk. We’ve identified 1 warning sign If you are considering partnering with Geely Automobile Holdings, understanding them should be part of your investment process.
of course Geely Automobile 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 based on historical data and analyst forecasts using only unbiased methodologies, 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.