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Some Dynagreen Environmental Protection Group (HKG:1330) Shareholders Are Down 13%

Dynagreen Environmental Protection Group Co., Ltd. (HKG:1330) shareholders should be happy to see the share price up 14% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. After all, the share price is down 13% in the last year, significantly under-performing the market.

Check out our latest analysis for Dynagreen Environmental Protection Group

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).

During the unfortunate twelve months during which the Dynagreen Environmental Protection Group share price fell, it actually saw its earnings per share (EPS) improve by 24%. It could be that the share price was previously over-hyped. The divergence between the EPS and the share price is quite notable, during the year. So it's well worth checking out some other metrics, too.

Dynagreen Environmental Protection Group managed to grow revenue over the last year, which is usually a real positive. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.

The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.

SEHK:1330 Income Statement, April 13th 2019
SEHK:1330 Income Statement, April 13th 2019

We know that Dynagreen Environmental Protection Group has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Dynagreen Environmental Protection Group will earn in the future (free profit forecasts)

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Dynagreen Environmental Protection Group's total shareholder return (TSR) and its share price change, which we've covered above. 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. Its history of dividend payouts mean that Dynagreen Environmental Protection Group's TSR, which was a 13% drop over the last year, was not as bad as the share price return.

A Different Perspective

The last twelve months weren't great for Dynagreen Environmental Protection Group shares, which performed worse than the market, costing holders 13%, including dividends. Meanwhile, the broader market slid about 4.0%, likely weighing on the stock. Fortunately the longer term story is brighter, with total returns averaging about 0.7% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. Importantly, we haven't analysed Dynagreen Environmental Protection Group's dividend history. This free visual report on its dividends is a must-read if you're thinking of buying.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.

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