Beijing Capital Eco-Environment Protection Group (SHSE:600008) shareholders YoY returns are lagging the company's 203% one-year earnings growth

The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Beijing Capital Eco-Environment Protection Group Co., Ltd. (SHSE:600008) share price is 19% higher than it was a year ago, much better than the market return of around 2.8% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! On the other hand, longer term shareholders have had a tougher run, with the stock falling 0.9% in three years.

Since the long term performance has been good but there's been a recent pullback of 3.3%, let's check if the fundamentals match the share price.

Check out our latest analysis for Beijing Capital Eco-Environment Protection Group

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.

Beijing Capital Eco-Environment Protection Group was able to grow EPS by 203% in the last twelve months. This EPS growth is significantly higher than the 19% increase in the share price. So it seems like the market has cooled on Beijing Capital Eco-Environment Protection Group, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.66.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that Beijing Capital Eco-Environment Protection Group has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Beijing Capital Eco-Environment Protection Group will grow revenue in the future.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Beijing Capital Eco-Environment Protection Group, it has a TSR of 23% for the last 1 year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Beijing Capital Eco-Environment Protection Group has rewarded shareholders with a total shareholder return of 23% in the last twelve months. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 4%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Beijing Capital Eco-Environment Protection Group better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Beijing Capital Eco-Environment Protection Group (including 2 which are significant) .

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are 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.