over the last month, Dynamic Holdings Limited (HKG:29) is much stronger than before, recovering 32%. But the fact remains that returns have been poor over the last three years. After all, the stock has fallen 18% over the past three years, well below the market.
The stock is up 12% over the past week, but long-term shareholders are still in the red, but let’s see what the fundamentals tell us.
See the latest analysis from Dynamic Holdings
To quote Buffett, “Ships sail the world, but the Flat Earth Society thrives. There will continue to be a great discrepancy between price and value in the market…” By comparing earnings (EPS) and stock price over time, you can get a sense of how investor attitudes toward companies have changed over time.
During the five-year stock rally, Dynamic Holdings went from loss to profit. Stock prices are usually expected to rise as a result. So, given that the stock is down, it’s worth checking out other indicators as well.
With a yield of only 0.1%, which is quite small, I doubt the stock is based on dividends. Earnings declined at an annualized rate of 8.4% over the three-year period, and there may have been shareholders considering a sale. After all, if revenues continue to shrink, it can become harder to find revenue growth in the future.
Here’s how the revenue and returns changed over time (click the image to see the exact values).
Note that CEO salaries are lower than the median for companies of similar size. But while CEO compensation is always worth checking, the real question is whether the company will be profitable going forward.Might be worth taking a look at us freedom Reports on Dynamic Holdings revenues, earnings, and cash flow.
another point of view
The 3.8% decline in Dynamic Holdings’ share price over the course of the year was certainly disappointing, but not as bad as the market’s 13% decline. Of course, long-term returns are much more important, and the good news is that we’ve been getting 3% returns each year over five years. The business may only be facing short-term problems, but shareholders should pay attention to the fundamentals. It’s always interesting to track stock performance over the long term. However, many other factors should be considered to better understand Dynamic Holdings.For example we discovered Two Warning Signs for Dynamic Holdings (1 is a little worrying!) Things to know before investing here.
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Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the Hong Kong exchange.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies 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 financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …