Some China Ting Group Holdings (HKG:3398) Shareholders Are Down 42%
In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But if you try your hand at stock picking, your risk returning less than the market. Unfortunately, that's been the case for longer term China Ting Group Holdings Limited (HKG:3398) shareholders, since the share price is down 42% in the last three years, falling well short of the market return of around -3.2%. More recently, the share price has dropped a further 14% in a month. We do note, however, that the broader market is down 9.6% in that period, and this may have weighed on the share price.
Check out our latest analysis for China Ting Group Holdings
China Ting Group Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years China Ting Group Holdings saw its revenue shrink by 3.3% per year. That is not a good result. The stock has disappointed holders over the last three years, falling 17%, annualized. That makes sense given the lack of either profits or revenue growth. Of course, sentiment could become too negative, and the company may actually be making progress to profitability.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling China Ting Group Holdings stock, you should check out this FREE detailed report on its balance sheet.
What about the Total Shareholder Return (TSR)?
Investors should note that there's a difference between China Ting Group Holdings's total shareholder return (TSR) and its share price change, which we've covered above. 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. China Ting Group Holdings's TSR of was a loss of 38% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.
A Different Perspective
China Ting Group Holdings shareholders are down 16% over twelve months, which isn't far from the market return of -17%. Unfortunately, last year's performance is a deterioration of an already poor long term track record, given the loss of 3.0% per year over the last five years. Weak performance over the long term usually destroys market confidence in a stock, but bargain hunters may want to take a closer look for signs of a turnaround. It's always interesting to track share price performance over the longer term. But to understand China Ting Group Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with China Ting Group Holdings .
We will like China Ting Group Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
