Even after rising 31% this past week, Legend Holdings (HKG:3396) shareholders are still down 37% over the past five years

Over the last month the Legend Holdings Corporation (HKG:3396) has been much stronger than before, rebounding by 71%. But that doesn't change the fact that the returns over the last five years have been less than pleasing. In fact, the share price is down 46%, which falls well short of the return you could get by buying an index fund.

While the stock has risen 31% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

View our latest analysis for Legend Holdings

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 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).

Legend Holdings has made a profit in the past. However, it made a loss in the last twelve months, suggesting profit may be an unreliable metric at this stage. Other metrics might give us a better handle on how its value is changing over time.

Revenue is actually up 4.1% over the time period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Legend Holdings' total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Legend Holdings shareholders, and that cash payout explains why its total shareholder loss of 37%, over the last 5 years, isn't as bad as the share price return.

A Different Perspective

Legend Holdings' TSR for the year was broadly in line with the market average, at 31%. To take a positive view, the gain is pleasing, and it sure beats annualized TSR loss of 6%, which was endured over half a decade. While 'turnarounds seldom turn' there are green shoots for Legend Holdings. It's always interesting to track share price performance over the longer term. But to understand Legend Holdings better, we need to consider many other factors. Take risks, for example - Legend Holdings has 1 warning sign we think you should be aware of.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.