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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Yongmao Holdings Limited (SGX:BKX) share price is up 56% in the last year, clearly besting than the market return of around -0.2% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
See our latest analysis for Yongmao Holdings
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Yongmao Holdings was able to grow EPS by 122% in the last twelve months. It's fair to say that the share price gain of 56% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Yongmao Holdings as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 5.08.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
This free interactive report on Yongmao Holdings's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Yongmao Holdings the TSR over the last year was 59%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
It's good to see that Yongmao Holdings has rewarded shareholders with a total shareholder return of 59% in the last twelve months. And that does include the dividend. Notably the five-year annualised TSR loss of 7.7% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. Before forming an opinion on Yongmao Holdings you might want to consider the cold hard cash it pays as a dividend. This free chart tracks its dividend over time.