Despite lower earnings than a year ago, Budweiser Brewing Company APAC (HKG:1876) investors are up 16% since then

Budweiser Brewing Company APAC Limited (HKG:1876) shareholders might be concerned after seeing the share price drop 10% in the last quarter. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. Looking at the full year, the company has easily bested an index fund by gaining 14%.

Since the long term performance has been good but there's been a recent pullback of 4.0%, let's check if the fundamentals match the share price.

Check out our latest analysis for Budweiser Brewing Company APAC

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year, Budweiser Brewing Company APAC actually saw its earnings per share drop 3.9%.

We don't think that the decline in earnings per share is a good measure of the business over the last twelve months. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

We are skeptical of the suggestion that the 1.3% dividend yield would entice buyers to the stock. Budweiser Brewing Company APAC's revenue actually dropped 4.6% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Budweiser Brewing Company APAC is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for Budweiser Brewing Company APAC in this interactive graph of future profit estimates.

A Different Perspective

We're pleased to report that Budweiser Brewing Company APAC rewarded shareholders with a total shareholder return of 16% over the last year. That includes the value of the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 4%. The improving returns to shareholders suggests the stock is becoming more popular with time. Is Budweiser Brewing Company APAC cheap compared to other companies? These 3 valuation measures might help you decide.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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