Shanghai Chengtou Holdings Co., Ltd. (SHSE:600649) earnings and shareholder returns have been trending downwards over the past five years, yet its share price rose 6.0% last week.

Ideally, your entire portfolio should beat the market average. But even the best stock pickers need to win. Several Choice. So we’re in the long term. Shanghai Chengtou Holdings Co., Ltd. (SHSE:600649) shareholders are beginning to question their decision to hold, with the share price falling 46% over five years. Even worse, it’s down 14% in about a month, which is no fun at all. However, we should bear in mind that the broader market is down 6.3% in the same period, which may be weighing on the share price.

The recent 6.0% increase could be a positive sign for the future, so let’s take a look at historical fundamentals.

Check out our latest analysis for Shanghai Chengtou Holdings Co., Ltd.

There’s no denying that markets are efficient sometimes, but share prices do not necessarily reflect underlying business performance.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.

Looking back over the past five years, both Shanghai Chengtou Holdings’s share price and EPS have fallen, with the latter falling at a rate of 18% per year. This EPS decline is worse than the share price decline of 12% per year. Therefore, investors may be expecting EPS to recover. Or, they may have predicted the EPS decline for some time.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Please check it out. free Shanghai Chengtou Holdings earnings, revenue and cash flow report.

What about dividends?

As well as measuring the price return, investors should also consider the total shareholder return (TSR). While the 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. It is fair to say that the TSR gives a more complete picture for stocks that pay dividends. In the case of Shanghai Chengtou Holdings, the TSR for the past 5 years was -40%, which is better than the price return shown above. The dividends paid by the company have thus boosted the share price. total Shareholder returns.

A different perspective

While it’s never good to suffer a loss, Shanghai Chengtou Holdings (Shanghai) shareholders can take comfort in the fact that the loss over the last 12 months, including dividends, was 8.4%, not as bad as the market loss of around 16%. What’s even more infuriating is that investors have suffered an annualized loss of 7% over the past five years. While this kind of share price movement is not particularly encouraging, at least the losses are slowing. It’s always interesting to track the longer term trends of a share price. However, to understand Shanghai Chengtou Holdings better, we need to consider a number of other factors. To do that, Two Warning Signs We found Shanghai Chengtou HoldingLtd (including one important one).

If you like buying stocks with management teams, you might like this free A list of companies. (Hint: many of these are under the radar and have attractive valuations.)

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on China exchanges.

Have feedback about this article? Concerns about the content? contact Please contact us directly. Or email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

Have feedback about this article? Concerns about the content? Contact us directly. Or email us at editorial-team@simplywallst.com