Keck Seng Investments (Hong Kong) Limited (HKG: 184) Shareholders will no doubt be very grateful to see the share price rise by 30% in the last quarter. But that doesn’t change the fact that the returns of the past three years have not been satisfactory. In fact, the stock price has fallen 40% over the past three years, well below market performance.

Check out our latest analysis for Keck Seng Investments (Hong Kong)

To paraphrase Benjamin Graham: In the short term, the market is a voting machine, but in the long term, it is a weigher. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s stock price and its earnings per share (EPS).

Keck Seng Investments (Hong Kong) saw its price decline in the three years in which its EPS also fell, falling to a loss. Due to the loss, it is not easy to use EPS as a reliable guide for the business. But it’s safe to say that we generally expect the stock price to be lower as a result!

The company’s earnings per share (over time) is shown in the image below (click to see exact numbers).

SEHK: Earnings per share growth of 184 May 30, 2021

This free Keck Seng Investments (Hong Kong) Interactive Earnings, Income & Cash Flow Report is a great place to start if you want to dig deeper into your stock research.

What about Total Shareholder Return (TSR)?

We have already hedged the stock price of Keck Seng Investments (Hong Kong), but we should also mention its total shareholder return (TSR). TSR is a yield calculation that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of any capital increase and discounted spin-off. The dividends have been really beneficial for the shareholders of Keck Seng Investments (Hong Kong), and this cash payment explains why its total loss to shareholders of 36%, over the past 3 years, is not as bad as the share price return.

A different perspective

The shareholders of Keck Seng Investments (Hong Kong) are up 31% over the year. But this yield is below the market. On the bright side, it’s still a gain, and it’s certainly better than the roughly 5% annual loss suffered for half a decade. The business may well stabilize. It is always interesting to follow the evolution of stock prices over the long term. But to understand Keck Seng Investments (Hong Kong) better, there are many other factors to consider. Take risks, for example – Keck Seng Investments (Hong Kong) a 3 warning signs (and 2 which are potentially serious) we think you should be aware of.

If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of companies that have proven they can increase their profits.

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the Hong Kong stock exchanges.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
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