A Look At Honbridge Holdings' (HKG:8137) Share Price Returns

Honbridge Holdings Limited (HKG:8137) shareholders will doubtless be very grateful to see the share price up 80% in the last month. But that is small recompense for the exasperating returns over three years. Indeed, the share price is down a tragic 62% in the last three years. So it is really good to see an improvement. After all, could be that the fall was overdone.

View our latest analysis for Honbridge Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

During the three years that the share price fell, Honbridge Holdings' earnings per share (EPS) dropped by 24% each year. This fall in EPS isn't far from the rate of share price decline, which was 28% per year. So it seems like sentiment towards the stock hasn't changed all that much over time. In this case, it seems that the EPS is guiding the share price.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized 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. It might be well worthwhile taking a look at our free report on Honbridge Holdings' earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Honbridge Holdings shareholders have received a total shareholder return of 57% over one year. There's no doubt those recent returns are much better than the TSR loss of 4% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Honbridge Holdings is showing 3 warning signs in our investment analysis , 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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