TRAVELSKY TECHNOLOGY LIMITED. (HKG:696) shareholders will be happy to see that the share price has increased 11% in the last month. But do not envy the holders. If you look back over the last five years, the returns have been very poor. In fact, the stock price fell 60% during this period. So I'm not really sure if I should celebrate the recent backlash. However, in the best case scenario (which is never the case), Fait accompli), this improved performance is likely to be maintained.
More encouragingly, the company has increased its market capitalization by HK$878m in the past 7 days. So let's see if he can identify the cause of the five-year loss for shareholders.
Check out our latest analysis for TravelSky Technology.
in his essay Graham & Doddsville SuperInvestors Warren Buffett has said that stock prices do not always rationally reflect the value of a company. One way he looks at how market sentiment has changed over time is to look at the interaction between a company's stock price and his earnings per share (EPS).
During the five years that the share price fell, TravelSky Technology's earnings per share (EPS) fell by 10% each year. Readers should note that the stock price has fallen faster than his EPS during this period, at a rate of 17% per year. This means that the market has become more cautious about this business lately.
The image below shows how EPS has changed over time (unveil the exact values by clicking on the image).
We're pleased to report that our CEO is paid more modestly than most CEOs at similarly capitalized companies. While it's always worth keeping an eye on CEO pay, the more important question is whether the company will grow its earnings over the years.It might be well worth taking a look at ours free TravelSky Technology earnings, revenue and cash flow report.
What will happen to the dividend?
As well as measuring share price return, investors should also consider total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return delivered by a stock. We note that TravelSky Technology's TSR over the last 5 years was -58%, which is better than the share price return mentioned above. And there's no kudos to speculating that dividend payments are the main explanation for the divergence.
different perspective
Unfortunately, TravelSky Technology shareholders are down 43% for the year (even including dividends). Unfortunately, this is worse than the overall market decline of 6.6%. However, it is also possible that the stock price is simply being affected by broader market fluctuations. It might be worth looking at the basics in case a good opportunity presents itself. Unfortunately, last year's performance ended on a down note, with shareholders facing a total annual loss of 10% over five years. I know Baron Rothschild said investors should “buy when there's blood on the streets,” but investors should first make sure they're buying a high-quality business. Warns you that you need to confirm. Before forming an opinion about TravelSky Technology, we recommend you consider the following three metrics:
If you want to buy stocks with management, you might like this free List of companies. (Hint: Insiders are buying them).
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 help make it simple.
Check out our comprehensive analysis, including below, to see if TravelSky Technology is potentially overvalued or undervalued. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
