Reflecting on Asia Standard International Group's (HKG:129) Share Price Returns Over The Last Three Years

While it may not be enough for some shareholders, we think it is good to see the Asia Standard International Group Limited (HKG:129) share price up 11% in a single quarter. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 50% in the last three years, significantly under-performing the market.

Check out our latest analysis for Asia Standard International Group

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.

Asia Standard International Group saw its EPS decline at a compound rate of 20% per year, over the last three years. So do you think it's a coincidence that the share price has dropped 21% per year, a very similar rate to the EPS? We don't. So it seems like sentiment towards the stock hasn't changed all that much over time. Rather, the share price has approximately tracked EPS growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

What about the Total Shareholder Return (TSR)?

We've already covered Asia Standard International Group's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that Asia Standard International Group's TSR, which was a 48% drop over the last 3 years, was not as bad as the share price return.

A Different Perspective

Asia Standard International Group provided a TSR of 14% over the last twelve months. But that return falls short of the market. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 3% endured over half a decade. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Asia Standard International Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Asia Standard International Group (of which 2 shouldn't be ignored!) you should know about.

Of course Asia Standard International Group 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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