Stock Analysis

Inner Mongolia Xingye Silver &Tin MiningLtd's (SZSE:000426) three-year earnings growth trails the notable shareholder returns

SZSE:000426
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By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. Just take a look at Inner Mongolia Xingye Silver &Tin Mining Co.,Ltd (SZSE:000426), which is up 83%, over three years, soundly beating the market decline of 20% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 54% , including dividends .

Since it's been a strong week for Inner Mongolia Xingye Silver &Tin MiningLtd shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for Inner Mongolia Xingye Silver &Tin MiningLtd

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.

Inner Mongolia Xingye Silver &Tin MiningLtd was able to grow its EPS at 80% per year over three years, sending the share price higher. The average annual share price increase of 22% is actually lower than the EPS growth. Therefore, it seems the market has moderated its expectations for growth, somewhat.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
SZSE:000426 Earnings Per Share Growth April 4th 2024

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on Inner Mongolia Xingye Silver &Tin MiningLtd's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Inner Mongolia Xingye Silver &Tin MiningLtd shareholders have received a total shareholder return of 54% over one year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 12% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before deciding if you like the current share price, check how Inner Mongolia Xingye Silver &Tin MiningLtd scores on these 3 valuation metrics.

We will like Inner Mongolia Xingye Silver &Tin MiningLtd 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 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.