A Look At China Greenland Broad Greenstate Group's (HKG:1253) Share Price Returns

We're definitely into long term investing, but some companies are simply bad investments over any time frame. We really hate to see fellow investors lose their hard-earned money. Spare a thought for those who held China Greenland Broad Greenstate Group Company Limited (HKG:1253) for five whole years - as the share price tanked 78%. Shareholders have had an even rougher run lately, with the share price down 21% in the last 90 days.

Check out our latest analysis for China Greenland Broad Greenstate 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. 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.

Looking back five years, both China Greenland Broad Greenstate Group's share price and EPS declined; the latter at a rate of 13% per year. This reduction in EPS is less than the 26% annual reduction in the share price. So it seems the market was too confident about the business, in the past.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of China Greenland Broad Greenstate Group's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 15% in the last year, China Greenland Broad Greenstate Group shareholders lost 8.5%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 12% per annum loss investors have suffered over the last half decade. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. It's always interesting to track share price performance over the longer term. But to understand China Greenland Broad Greenstate Group better, we need to consider many other factors. Take risks, for example - China Greenland Broad Greenstate Group has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.

Of course China Greenland Broad Greenstate Group 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 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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