Intron Technology Holdings (HKG:1760) stock performs better than its underlying earnings growth over last three years
By purchasing an index fund, you can roughly match market performance with ease. But many of us dare to dream of higher returns and build ourselves a portfolio. For example, the Intron Technology Holdings Limited (HKG: 1760) stock prices have risen 99% in the last three years, clearly outpacing the market drop by around 9.8% (excluding dividends). However, the most recent returns have not been as impressive as this, with shares returning only 63% last year, including dividends.
After a solid 7-day return, we see what role the company’s fundamentals have played in generating long-term shareholder returns.
Check out our latest analysis from Intron Technology Holdings
To quote Buffett, “Ships will sail the world, but the Flat Earth Society will prosper.” There will be large discrepancies between price and market value … ‘One way to examine how market sentiment has changed over time is to analyze the interaction between a company’s stock price and its profits. per action (EPS).
During three years of stock price growth, Intron Technology Holdings achieved compound earnings per share growth of 0.1% annually. This EPA growth is lower than the average annual 26% increase in stock prices. This suggests that as the business progressed in recent years, it gained the trust of market participants. It is quite common to see investors in love with a business, after a few years of solid progress.
The following graph shows how the EPS has changed over time (reveal the exact values by clicking on the image).
We know that Intron Technology Holdings has improved its results lately, but will it increase revenue? That free The report showing analysts ’revenue forecasts will help you find out if EPS growth can be maintained.
What about dividends?
When looking at return on investment, it is important to consider the difference between them total shareholder performance (TSR) i profitability of the share price. While the share price return only reflects the change in the share price, the TSR includes the value of the dividends (assuming they have been reinvested) and the benefit of any discounted capital increase or spin-off. It is fair to say that the TSR offers a more complete picture of dividend-paying stocks. We note that for Intron Technology Holdings, the TSR for the last 3 years was 107%, which is better than the stock price performance mentioned above. This is largely the result of your dividend payments!
A Different Perspective
It’s nice to see that Intron Technology Holdings shareholders have gained 63% (in total) over the last year. This includes the dividend. This is better than the annualized TSR of 28% over the last three years. These improved returns may indicate some real business momentum, implying that now might be a good time to dig deeper. It is always interesting to track long-term stock price performance. But to better understand Intron Technology Holdings, we need to consider many other factors. For example, we have discovered 2 warning signs for Intron Technology Holdings (1 is worrisome!) That you should consider before investing here.
Of couse Intron Technology Holdings may not be the best stock to buy. So you may want to see this free collection of growth stocks.
Note that the market returns cited in this article reflect the market-weighted average returns of the shares currently listed on the Hong Kong stock exchanges.
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This Simply Wall St article is of a general nature. We offer feedback 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 shares, and does not take into account your goals or your financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company ads or quality material. Simply Wall St has no position in any of the aforementioned actions.