Aidigong Maternal & Child Health's(HKG:286) Share Price Is Down 14% Over The Past Three Years.

Aidigong Maternal & Child Health Limited (HKG:286) shareholders should be happy to see the share price up 24% in the last week. But that doesn't change the fact that the returns over the last three years have been less than pleasing. Truth be told the share price declined 14% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

See our latest analysis for Aidigong Maternal & Child Health

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.

Aidigong Maternal & Child Health became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. So it's worth looking at other metrics to try to understand the share price move.

With a rather small yield of just 0.1% we doubt that the stock's share price is based on its dividend. We note that, in three years, revenue has actually grown at a 9.0% annual rate, so that doesn't seem to be a reason to sell shares. It's probably worth investigating Aidigong Maternal & Child Health further; while we may be missing something on this analysis, there might also be an opportunity.

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

Take a more thorough look at Aidigong Maternal & Child Health's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Aidigong Maternal & Child Health has rewarded shareholders with a total shareholder return of 11% in the last twelve months. And that does include the dividend. There's no doubt those recent returns are much better than the TSR loss of 2% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Aidigong Maternal & Child Health (including 2 which is are concerning) .

Of course Aidigong Maternal & Child Health 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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