Beijing Andawell Science & Technology's (SZSE:300719) five-year earnings growth trails the favorable shareholder returns

It hasn't been the best quarter for Beijing Andawell Science & Technology Co., Ltd. (SZSE:300719) shareholders, since the share price has fallen 20% in that time. Looking further back, the stock has generated good profits over five years. It has returned a market beating 39% in that time.

The past week has proven to be lucrative for Beijing Andawell Science & Technology investors, so let's see if fundamentals drove the company's five-year performance.

Check out our latest analysis for Beijing Andawell Science & Technology

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

During the five years of share price growth, Beijing Andawell Science & Technology moved from a loss to profitability. That would generally be considered a positive, so we'd hope to see the share price to rise.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Beijing Andawell Science & Technology's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Beijing Andawell Science & Technology the TSR over the last 5 years was 44%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It's good to see that Beijing Andawell Science & Technology has rewarded shareholders with a total shareholder return of 39% in the last twelve months. Of course, that includes the dividend. That's better than the annualised return of 8% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Beijing Andawell Science & Technology better, we need to consider many other factors. Even so, be aware that Beijing Andawell Science & Technology is showing 4 warning signs in our investment analysis , and 3 of those are potentially serious...

Of course Beijing Andawell Science & Technology may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com