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Low-cost index funds make it easy to achieve average market returns. But in any diversified portfolio of stocks, you'll see some that fall short of the average. That's what has happened with the China Aircraft Leasing Group Holdings Limited (HKG:1848) share price. It's up 15% over three years, but that is below the market return. Unfortunately, the share price has fallen 2.5% over twelve months.
View our latest analysis for China Aircraft Leasing Group Holdings
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During three years of share price growth, China Aircraft Leasing Group Holdings achieved compound earnings per share growth of 23% per year. The average annual share price increase of 4.7% is actually lower than the EPS growth. So one could reasonably conclude that the market has cooled on the stock. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.87.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of China Aircraft Leasing Group Holdings, it has a TSR of 40% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
A Different Perspective
It's nice to see that China Aircraft Leasing Group Holdings shareholders have gained 5.4% (in total) over the last year. That includes the value of the dividend. But the three year TSR of 12% per year is even better. Before forming an opinion on China Aircraft Leasing Group Holdings you might want to consider the cold hard cash it pays as a dividend. This free chart tracks its dividend over time.