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Investors can approximate the average market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Kam Hing International Holdings Limited (HKG:2307) share price slid 30% over twelve months. That's disappointing when you consider the market returned -7.9%. At least the damage isn't so bad if you look at the last three years, since the stock is down 16% in that time. Unfortunately the share price momentum is still quite negative, with prices down 16% in thirty days. However, we note the price may have been impacted by the broader market, which is down 10% in the same time period.
View our latest analysis for Kam Hing International 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...' 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).
Even though the Kam Hing International Holdings share price is down over the year, its EPS actually improved. Of course, the situation might betray previous over-optimism about growth. It's surprising to see the share price fall so much, despite the improved EPS. But we might find some different metrics explain the share price movements better.
Kam Hing International Holdings's revenue is actually up 11% over the last year. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
What about the Total Shareholder Return (TSR)?
Investors should note that there's a difference between Kam Hing International Holdings's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Kam Hing International Holdings shareholders, and that cash payout explains why its total shareholder loss of 28%, over the last year, isn't as bad as the share price return.