Stock Analysis

Chia Tai Enterprises International's (HKG:3839) Stock Price Has Reduced 38% In The Past Five Years

SEHK:3839
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Ideally, your overall portfolio should beat the market average. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long term Chia Tai Enterprises International Limited (HKG:3839) shareholders for doubting their decision to hold, with the stock down 38% over a half decade. On the other hand, we note it's up 8.5% in about a month. But this could be related to good market conditions, with stocks up around 9.3% during the period.

Check out our latest analysis for Chia Tai Enterprises International

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 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).

earnings-per-share-growth
SEHK:3839 Earnings Per Share Growth December 3rd 2020

A Different Perspective

Chia Tai Enterprises International shareholders are up 6.3% for the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 7% per year, over five years. So this might be a sign the business has turned its fortunes around. 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. To that end, you should be aware of the 1 warning sign we've spotted with Chia Tai Enterprises International .

Of course Chia Tai Enterprises International 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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Valuation is complex, but we're helping make it simple.

Find out whether Chia Tai Enterprises International is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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