Stock Analysis

How Much Did Pan Asia Data Holdings'(HKG:1561) Shareholders Earn From Share Price Movements Over The Last Year?

SEHK:1561
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Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held Pan Asia Data Holdings Inc. (HKG:1561) over the last year knows what a loser feels like. The share price is down a hefty 66% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 45% in that time. Shareholders have had an even rougher run lately, with the share price down 38% in the last 90 days.

View our latest analysis for Pan Asia Data Holdings

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).

Unfortunately Pan Asia Data Holdings reported an EPS drop of 60% for the last year. Readers should not this outcome was influenced by the impact of extraordinary items on EPS. And indeed the company lost money over the last twelve months. We note that the 66% share price drop is very close to the EPS drop. Given the lower EPS we might have expected investors to lose confidence in the stock, but that doesn't seemed to have happened. Rather, the share price is remains a similar multiple of the EPS, suggesting the outlook remains the same.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
SEHK:1561 Earnings Per Share Growth December 20th 2020

This free interactive report on Pan Asia Data Holdings' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

While the broader market gained around 7.6% in the last year, Pan Asia Data Holdings shareholders lost 66%. 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. On the bright side, long term shareholders have made money, with a gain of 8% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Pan Asia Data Holdings better, we need to consider many other factors. Take risks, for example - Pan Asia Data Holdings has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

But note: Pan Asia Data Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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