How Much Did Pingtan Marine Enterprise's(NASDAQ:PME) Shareholders Earn From Share Price Movements Over The Last Three Years?

It is a pleasure to report that the Pingtan Marine Enterprise Ltd. (NASDAQ:PME) is up 94% in the last quarter. But that doesn't help the fact that the three year return is less impressive. Truth be told the share price declined 40% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

Check out our latest analysis for Pingtan Marine Enterprise

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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the three years that the share price fell, Pingtan Marine Enterprise's earnings per share (EPS) dropped by 44% each year. In comparison the 16% compound annual share price decline isn't as bad as the EPS drop-off. So, despite the prior disappointment, shareholders must have some confidence the situation will improve, longer term.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Pingtan Marine Enterprise's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Pingtan Marine Enterprise shareholders have received a total shareholder return of 32% over one year. That gain is better than the annual TSR over five years, which is 6%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Pingtan Marine Enterprise better, we need to consider many other factors. For example, we've discovered 4 warning signs for Pingtan Marine Enterprise (3 are concerning!) that you should be aware of before investing here.

Of course Pingtan Marine Enterprise 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 US exchanges.

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