U.S. Markets closed

The Bamboos Health Care Holdings (HKG:2293) Share Price Has Gained 57% And Shareholders Are Hoping For More

Simply Wall St

When we invest, we're generally looking for stocks that outperform the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, long term Bamboos Health Care Holdings Limited (HKG:2293) shareholders have enjoyed a 57% share price rise over the last half decade, well in excess of the market return of around 0.5% (not including dividends).

See our latest analysis for Bamboos Health Care Holdings

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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 five years of share price growth, Bamboos Health Care Holdings achieved compound earnings per share (EPS) growth of 19% per year. This EPS growth is higher than the 9.4% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days.

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

SEHK:2293 Past and Future Earnings, July 29th 2019

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

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Bamboos Health Care Holdings the TSR over the last 5 years was 74%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

While the broader market lost about 4.6% in the twelve months, Bamboos Health Care Holdings shareholders did even worse, losing 13% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 12%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Before spending more time on Bamboos Health Care Holdings it might be wise to click here to see if insiders have been buying or selling shares.

We will like Bamboos Health Care Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

  • Business
    Reuters

    US STOCKS-Futures climb on stimulus hopes, Nvidia results

    U.S. stock index futures rose 1% on Friday, as hopes of more stimulus from central banks helped lift some gloom in what has been a turbulent week for markets. The three main Wall Street indexes are on track for their third week of decline, after the inversion of a U.S. yield curve on Wednesday pointed to a looming recession. China said overnight that it was planning to roll out stimulus to stymie an economic slowdown.

  • Is Correvio Pharma (TSE:CORV) Using Too Much Debt?
    Business
    Simply Wall St.

    Is Correvio Pharma (TSE:CORV) Using Too Much Debt?

    The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. Another cause for caution is that is bled US$26m in negative free cash flow over the last twelve months.

  • A gun law case before the US Supreme Court has Americans up in arms
    Finance
    Quartz

    A gun law case before the US Supreme Court has Americans up in arms

    The US Supreme Court will soon consider the right to bear arms, something it hasn't done for nearly a decade. The case in question has pitted New York City against the New York State Pistol and Rifle Association over a law on transporting guns. The twist here is that New York City, and its many legal allies, say the case is actually moot.

  • This 1 Thing Could Be Killing Your Employees' Productivity
    Business
    Motley Fool

    This 1 Thing Could Be Killing Your Employees' Productivity

    The more productive your employees are, the more value they'll offer. In fact, 70% of global employees say that office noise hurts them during the workday, reports Remote.co. There's apt to be some level of noise in any given office environment, whether it's chitchat among colleagues, ringing phones, or the sound of other people's fingers furiously typing away on computer keyboards.

  • Business
    Reuters

    Iraq bumps up domestic production of gasoil and gasoline

    Iraq raised its domestic production of gasoil and gasoline in 2019, the Oil Ministry said in statement on Saturday. The statement said the increase was largely the result of moves to increase output from Iraq's refineries, some of which have been rebuilt after being damaged by militant groups. Iraq uses most of the fuel it produces for domestic consumption, the statement said.

  • Central banks haven’t shifted direction this abruptly in a decade
    Business
    MarketWatch

    Central banks haven’t shifted direction this abruptly in a decade

    The shift in central bank monetary policy direction during the last six months hasn't been this dramatic in a decade. Fitch Ratings, examining the direction but not magnitude of central bank shifts, found that more than a third of them have loosened monetary policy in the past six months. Those central banks range from the U.S. to Turkey, with only Norway and the Czech Republic going in a different direction by raising interest rates, Fitch found.

  • 3 Dividend Stocks That Should Pay You the Rest of Your Life
    Business
    Motley Fool

    3 Dividend Stocks That Should Pay You the Rest of Your Life

    There's a balance in the dividend space between high yields and dividend sustainability. In the end, it's generally more important to find stocks that can keep paying -- and hopefully increasing -- their dividends than to stretch for high yields that are ephemeral because they are backed by dividends that are likely to get cut. If you want to add a few good dividend names to your portfolio, these three Motley Fool contributors think you'll want to look at biotech Gilead Sciences (NASDAQ: GILD), telecom giant Verizon (NYSE: VZ), and consumer products specialist Procter & Gamble (NYSE: PG).

  • Senior rip-offs are soaring—and you won’t believe who the crooks are
    News
    MarketWatch

    Senior rip-offs are soaring—and you won’t believe who the crooks are

    For financial scammers, that means 10,000 potential new victims every 24 hours. While anyone, anywhere, at anytime can be a victim of a financial scam—and below are some of the most common ones—seniors are particularly at risk. “Older Americans are more vulnerable for many reasons,” says Joe Snyder of the National Adult Protective Services Association (NAPSA), a Washington, D.C.-based nonprofit that works with the financial industry, seniors groups and others to reduce rip-offs.

  • These 16 money wasters are why so many Americans can’t save for retirement
    News
    MarketWatch

    These 16 money wasters are why so many Americans can’t save for retirement

    From the lofty perch of old age, and after a lifetime of thrift, I declare that I am qualified to comment on how not to waste money. We've all heard the reports: Most Americans live paycheck to paycheck, a large number can't come up with $400 for an emergency, and there's no money to save for retirement and other goals. Most of that data comes from surveys where people are, in effect, saying they don't have enough income.

  • GE shares rebound after worst day in 11 years
    Business
    Yahoo Finance Video

    GE shares rebound after worst day in 11 years

    GE shares rebounded on Friday after CEO Larry Culp made a big bet on the company in the wake of fraud accusations made by Madoff whistleblower Harry Markopolos. Yahoo Finance's Myles Udland and Brian Sozzi discuss.

  • How Many Global Net Lease, Inc. (NYSE:GNL) Shares Do Institutions Own?
    Business
    Simply Wall St.

    How Many Global Net Lease, Inc. (NYSE:GNL) Shares Do Institutions Own?

    Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned. Global Net Lease has a market capitalization of US$1.6b, so we would expect some institutional investors to have noticed the stock.

  • How To Invest In Stocks: A Guide To The Stock Market For Beginners
    Business
    Investor's Business Daily

    How To Invest In Stocks: A Guide To The Stock Market For Beginners

    You just need to learn some basic rules for how to identify the best stocks to watch, the ideal time to buy them, and when to sell stocks to lock in your profits or quickly cut any losses. So scroll down for proven rules on how to make money in the stock market for both beginners and more experienced investors. And if you're tempted to buy new IPOs like Beyond Meat, Grocery Outlet, Uber Technologies, Zoom Video Communications, CrowdStrike, and Warren Buffett-backed IPO StoneCo, first learn this important lesson on how to buy IPO stocks from Facebook, Alibaba and Snap first.

  • Mark Cuban explains how to make a 16% guaranteed return
    Business
    MarketWatch

    Mark Cuban explains how to make a 16% guaranteed return

    As Mark Cuban, the “Shark Tank” star, billionaire entrepreneur, and NBA franchise owner explains, just pay off your debts. The personal finance site NerdWallet put our revolving credit card balance at $420.22 billion in late 2018. The revolving number is just the credit card debt we carry from month to month.

  • Why San Francisco doesn't care about the stock market
    Business
    Yahoo Finance Video

    Why San Francisco doesn't care about the stock market

    Yahoo Finance's Jen Rogers joins The Final Round from San Francisco to discuss why the biggest tech companies is Silicon Valley don't care about the stock market.

  • Why Novavax Stock Is Soaring Today
    Business
    Motley Fool

    Why Novavax Stock Is Soaring Today

    Shares of the clinical-stage biotech Novavax (NASDAQ: NVAX) are up by 10.65% as of 10:34 a.m. EDT today. Novavax's shares have been bolting higher of late in response to a newly released clinical update for the company's experimental respiratory syncytial virus (RSV) vaccine known as ResVax. Based on how Novavax's stock has reacted to this clinical update, investors seem to be under the impression that the company may now be able to find a viable regulatory pathway for ResVax in either the U.S. or another high-value market abroad.

  • The U.S. Rig Count Is Falling -- Here's Why Oil Production Keeps Rising Anyway
    Business
    Motley Fool

    The U.S. Rig Count Is Falling -- Here's Why Oil Production Keeps Rising Anyway

    Not surprisingly, this rising rig count drove strong growth in U.S. oil production. However, a sharp drop in oil prices last fall caused oil companies to start cutting back on drilling activity. As a result, the U.S. oil rig count has fallen steadily during 2019 and is now significantly lower than it was a year ago.

  • The retirement crisis is bad for everyone — especially these people
    Business
    MarketWatch

    The retirement crisis is bad for everyone — especially these people

    The country is facing a retirement crisis, but some Americans are worse off than others. Workers in the top 20% of earnings distributions have half of all retirement wealth in both 1992 and 2010, compared with the bottom group, which saw its share fall from 3% to 1% between those years, a recent analysis at The New School's Schwartz Center for Economic Policy Analysis (SCEPA) found. The share of workers in the bottom fifth of the earnings distribution with no retirement savings jumped from 45% to 51% in those 18 years.

  • Some Pareteum (NASDAQ:TEUM) Shareholders Have Taken A Painful 87% Share Price Drop
    Business
    Simply Wall St.

    Some Pareteum (NASDAQ:TEUM) Shareholders Have Taken A Painful 87% Share Price Drop

    Imagine if you held Pareteum Corporation (NASDAQ:TEUM) for half a decade as the share price tanked 87%. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report. Given that Pareteum didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.

  • 4 Industry Leaders With Ultra-High Dividends
    Business
    Motley Fool

    4 Industry Leaders With Ultra-High Dividends

    With long-term bond yields at historically low levels, conservative investors may be looking to high-dividend stocks in order to get the returns they seek. For those looking for high dividends in a low-interest world, here are four market leaders that not only are household names but also sport dividend yields north of 4% and look to be safe bets to make good on those payments long term. AT&T (NYSE: T) is currently the second-largest U.S. mobile telecom service provider next to rival Verizon. Both AT&T and Verizon have large recurring subscriber bases and are currently investing heavily in the next-generation wireless communications: 5G.

  • 10 Best Stocks to Buy and Hold Forever
    Business
    InvestorPlace

    10 Best Stocks to Buy and Hold Forever

    In a market environment that overwhelmingly encourages constant activity by investors who seemingly want to double their money every week, a discussion of stocks to buy and hold forever seems comically out of place. Conversely, the fact that Warren Buffett's favorite holding period is “forever” and how he's got a track record most investors would envy is just as telling. With that as the backdrop, here's a rundown of 10 stocks to buy and hold forever … or at least until something significant changes with your life plans or the companies themselves.

  • I built a nest egg of $1 million and I’m only 46 — so why do I still spend my waking hours worrying?
    Business
    MarketWatch

    I built a nest egg of $1 million and I’m only 46 — so why do I still spend my waking hours worrying?

    We have over $1 million in investments for ourselves, an additional $50,000 in investments for our two girls to be used for college. We have made investing mistakes, but we have learned from them. All told, we currently have over $1 million in investments for ourselves, an additional $50,000 in investments (529s and a Scottrade custodial account) for our two girls to be used for college, with our only debt being the final few years of our mortgage.

  • Here’s the game plan for U.S. stock investors if China retaliates against Trump
    Business
    MarketWatch

    Here’s the game plan for U.S. stock investors if China retaliates against Trump

    In the past, China has shown extraordinary restraint in response to U.S. tariffs and President Trump's critical tweets. Let us discuss your game plan if China retaliates, starting with the help of two charts. Please click here for an annotated chart S&P 500 ETF (SPY) Even though the Dow Jones Industrial Average (DJIA) is the most popular index, for analysis purposes, investors ought to focus on S&P 500 because the most money is tied to the S&P 500 Index (SPX) of the largest U.S. companies.

  • China Lines Up Lower Borrowing Costs with Revamped Rate System
    Business
    Bloomberg

    China Lines Up Lower Borrowing Costs with Revamped Rate System

    China's central bank said it'll start releasing a new reference rate for bank loans, a further step in a long-awaited reform to interest rates that's set to bring lower borrowing costs to the economy. The People's Bank of China will announce the new loan prime rate, or LPR, at 9:30 a.m. on the 20th of every month, starting this month, according to a statement on Saturday. The central bank will require commercial lenders to set the price for new loans to businesses and households “mainly” with reference to the LPR, while the price for outstanding loans can stay unchanged for now, it said.

  • Business
    Barrons.com

    Some Stocks Are About to Go Ex-Dividend. Here Are Some to Consider Buying.

    Whether the market hits another rough patch next week, there's one thing that is certain: Investors who buy a stock just before it goes ex-dividend are entitled to the next payout. Bespoke Investment Group compiled a list of 19 stocks in the S&P 1500 that are going ex-dividend on Monday. Buying shares before the market close on Friday entitles the purchaser to the next dividend payment.

  • NVIDIA's Earnings Suggest It's Got Its Game Back; Stock Pops 7.3%
    Business
    Motley Fool

    NVIDIA's Earnings Suggest It's Got Its Game Back; Stock Pops 7.3%

    The key numbers Results rebounded nicely from last quarter, with sequential revenue and adjusted EPS growth of 16% and 41%, respectively. GAAP gross margin came in at 59.8%, down from 63.3% in the year-ago quarter but up from last quarter's 58.4%. Adjusted gross margin was 60.1%, down from 63.5% in the year-ago period but up from 59% in the previous quarter.