This week we saw the Byleasing Holdings Limited (HKG:8525) share price climb by 13%. But that doesn't alter the fact that returns have lagged the market over the last year. Specifically, the stock returned 17% whereas the market is down , having returned (-17%) over the last year.
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Unhappily, Byleasing Holdings had to report a 29% decline in EPS over the last year. This fall in the EPS is significantly worse than the 20% the share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
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. It might be well worthwhile taking a look at our free report on Byleasing Holdings's earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
We've already covered Byleasing Holdings's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Byleasing Holdings's TSR of was a loss of 17% for the year. That wasn't as bad as its share price return, because it has paid dividends.
A Different Perspective
Byleasing Holdings shareholders are down 17% over twelve months. That's reasonably close to the the market return of -16%. The problem was the last three months, during which the share price dropped 25%. This sort of price action makes us nervous, but solid improvements in the business could pique our interest. It's always interesting to track share price performance over the longer term. But to understand Byleasing Holdings better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Byleasing Holdings (including 1 which is is significant) .
We will like Byleasing Holdings 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 HK exchanges.
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