Imagine Owning Wee Hur Holdings (SGX:E3B) And Wondering If The 43% Share Price Slide Is Justified

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Ideally, your overall portfolio should beat the market average. But every investor is virtually certain to have both over-performing and under-performing stocks. So we wouldn't blame long term Wee Hur Holdings Ltd. (SGX:E3B) shareholders for doubting their decision to hold, with the stock down 43% over a half decade.

Check out our latest analysis for Wee Hur Holdings

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).

Looking back five years, both Wee Hur Holdings's share price and EPS declined; the latter at a rate of 28% per year. The share price decline of 11% per year isn't as bad as the EPS decline. The relatively muted share price reaction might be because the market expects the business to turn around.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

SGX:E3B Past and Future Earnings, December 17th 2019
SGX:E3B Past and Future Earnings, December 17th 2019

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Wee Hur Holdings's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Wee Hur Holdings, it has a TSR of -29% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Wee Hur Holdings shareholders gained a total return of 5.7% during the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 6.7% per year, over five years. So this might be a sign the business has turned its fortunes around. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Wee Hur Holdings by clicking this link.