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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. For instance the China International Holdings Limited (SGX:BEH) share price is 234% higher than it was three years ago. How nice for those who held the stock! On top of that, the share price is up 57% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.
Check out our latest analysis for China International Holdings
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).
China International Holdings became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
Dive deeper into China International Holdings's key metrics by checking this interactive graph of China International Holdings's earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
We've already covered China International Holdings's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for China International Holdings shareholders, and that cash payout contributed to why its TSR of 620%, over the last 3 years, is better than the share price return.
A Different Perspective
We're pleased to report that China International Holdings shareholders have received a total shareholder return of 43% over one year. That gain is better than the annual TSR over five years, which is 4.5%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. If you would like to research China International Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.