Some Nimble Holdings Company Limited (HKG:186) shareholders are probably rather concerned to see the share price fall 33% over the last three months. But don’t let that distract from the very nice return generated over three years. In the last three years the share price is up, 22%: better than the market.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over the last three years, Nimble Holdings failed to grow earnings per share, which fell 85% (annualized).
This means it’s unlikely the market is judging the company based on earnings growth. Therefore, we think it’s worth considering other metrics as well.
You can only imagine how long term shareholders feel about the declining revenue trend (slipping at per year). What’s clear is that historic earnings and revenue aren’t matching up with the share price action, very well. So you might have to dig deeper to get a grasp of the situation
The graphic below depicts how revenue has changed over time.
If you are thinking of buying or selling Nimble Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
The last twelve months weren’t great for Nimble Holdings shares, which cost holders 15%, while the market was up about 2.0%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Investors are up over three years, booking 6.8% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it’s turns out to be an opportunity, but you really need to be sure that the quality is there. Before forming an opinion on Nimble Holdings you might want to consider these 3 valuation metrics.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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 email@example.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.