Stock Analysis

Despite shrinking by HK$453m in the past week, ANE (Cayman) (HKG:9956) shareholders are still up 20% over 1 year

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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the ANE (Cayman) Inc. (HKG:9956) share price is 20% higher than it was a year ago, much better than the market decline of around 2.0% (not including dividends) in the same period. That's a solid performance by our standards! ANE (Cayman) hasn't been listed for long, so it's still not clear if it is a long term winner.

While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

View our latest analysis for ANE (Cayman)

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

ANE (Cayman) went from making a loss to reporting a profit, in the last year.

We think the growth looks very prospective, so we're not surprised the market liked it too. Inflection points like this can be a great time to take a closer look at a company.

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

SEHK:9956 Earnings Per Share Growth March 16th 2023

It might be well worthwhile taking a look at our free report on ANE (Cayman)'s earnings, revenue and cash flow.

A Different Perspective

ANE (Cayman) shareholders should be happy with the total gain of 20% over the last twelve months. And the share price momentum remains respectable, with a gain of 18% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand ANE (Cayman) better, we need to consider many other factors. For instance, we've identified 3 warning signs for ANE (Cayman) (1 makes us a bit uncomfortable) that you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

Valuation is complex, but we're helping make it simple.

Find out whether ANE (Cayman) is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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