The Wanguo International Mining Group (HKG:3939) Share Price Has Gained 41% And Shareholders Are Hoping For More

The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the Wanguo International Mining Group Limited (HKG:3939) share price is up 41% in the last year, clearly besting the market return of around 7.1% (not including dividends). So that should have shareholders smiling. However, the longer term returns haven't been so impressive, with the stock up just 27% in the last three years.

Check out our latest analysis for Wanguo International Mining Group

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 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.

Wanguo International Mining Group was able to grow EPS by 11% in the last twelve months. This EPS growth is significantly lower than the 41% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Wanguo International Mining Group's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Wanguo International Mining Group shareholders have received a total shareholder return of 41% over one year. Notably the five-year annualised TSR loss of 3% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Wanguo International Mining Group better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Wanguo International Mining Group .

But note: Wanguo International Mining Group 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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