How Much Did China Zheshang Bank's(HKG:2016) Shareholders Earn From Share Price Movements Over The Last Three Years?

One of the frustrations of investing is when a stock goes down. But when the market is down, you're bound to have some losers. The China Zheshang Bank Co., Ltd (HKG:2016) is down 14% over three years, but the total shareholder return is -2.4% once you include the dividend. That's better than the market which declined 3.3% over the last three years.

See our latest analysis for China Zheshang Bank

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

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. As it happens, China Zheshang Bank's TSR for the last 3 years was -2.4%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

China Zheshang Bank shareholders are up 5.1% for the year (even including dividends). While you don't go broke making a profit, this return was actually lower than the average market return of about 13%. On the bright side, that's certainly better than the yearly loss of about 0.8% endured over the last three years, implying that the company is doing better recently. We hope the turnaround in fortunes continues. It's always interesting to track share price performance over the longer term. But to understand China Zheshang Bank better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for China Zheshang Bank you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

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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. 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.
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