Evergrande Health Industry Group (HKG:708) Shareholders Have Enjoyed A Whopping 725% Share Price Gain
While Evergrande Health Industry Group Limited (HKG:708) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 22% in the last quarter. But over five years returns have been remarkably great. In that time, the share price has soared some 725% higher! So we don't think the recent decline in the share price means its story is a sad one. But the real question is whether the business fundamentals can improve over the long term. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 41% decline over the last twelve months.
Anyone who held for that rewarding ride would probably be keen to talk about it.
Check out our latest analysis for Evergrande Health Industry Group
Evergrande Health Industry Group wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
For the last half decade, Evergrande Health Industry Group can boast revenue growth at a rate of 56% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 53%(per year) over the same period. It's never too late to start following a top notch stock like Evergrande Health Industry Group, since some long term winners go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Evergrande Health Industry Group's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market lost about 9.2% in the twelve months, Evergrande Health Industry Group shareholders did even worse, losing 41%. 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. On the bright side, long term shareholders have made money, with a gain of 53% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Evergrande Health Industry Group better, we need to consider many other factors. For instance, we've identified 4 warning signs for Evergrande Health Industry Group (2 make us uncomfortable) that you should be aware of.
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 HK exchanges.
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.
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. Thank you for reading.
