Lida Holdings (TPE:4552) Share Prices Have Dropped 58% In The Last Three Years

If you love investing in stocks you're bound to buy some losers. Long term Lida Holdings Limited (TPE:4552) shareholders know that all too well, since the share price is down considerably over three years. Sadly for them, the share price is down 58% in that time. The good news is that the stock is up 2.4% in the last week.

View our latest analysis for Lida 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 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.

During the three years that the share price fell, Lida Holdings' earnings per share (EPS) dropped by 34% each year. This fall in the EPS is worse than the 25% compound annual share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into Lida Holdings' key metrics by checking this interactive graph of Lida Holdings's earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Lida Holdings, it has a TSR of -50% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

Over the last year Lida Holdings shareholders have received a TSR of 1.1%. It's always nice to make money but this return falls short of the market return which was about 23% for the year. On the bright side, that's certainly better than the yearly loss of about 14% endured over the last three years, implying that the company is doing better recently. We hope the turnaround in fortunes continues. It's always interesting to track share price performance over the longer term. But to understand Lida Holdings better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Lida Holdings (including 1 which is doesn't sit too well with us) .

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 TW 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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