Would Shareholders Who Purchased Talent Property Group's (HKG:760) Stock Five Years Be Happy With The Share price Today?

By
Simply Wall St
Published
May 24, 2021
SEHK:760
Source: Shutterstock

Over the last month the Talent Property Group Limited (HKG:760) has been much stronger than before, rebounding by 70%. But that doesn't change the fact that the returns over the last half decade have been stomach churning. Indeed, the share price is down a whopping 70% in that time. It's true that the recent bounce could signal the company is turning over a new leaf, but we are not so sure. The important question is if the business itself justifies a higher share price in the long term.

View our latest analysis for Talent Property Group

Because Talent Property Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over half a decade Talent Property Group reduced its trailing twelve month revenue by 11% for each year. That puts it in an unattractive cohort, to put it mildly. So it's not that strange that the share price dropped 11% per year in that period. This kind of price performance makes us very wary, especially when combined with falling revenue. Of course, the poor performance could mean the market has been too severe selling down. That can happen.

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

earnings-and-revenue-growth
SEHK:760 Earnings and Revenue Growth May 25th 2021

If you are thinking of buying or selling Talent Property Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Talent Property Group shareholders have received a total shareholder return of 56% over the last year. Notably the five-year annualised TSR loss of 11% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Talent Property Group better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Talent Property Group (including 1 which is concerning) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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