Tian Lun Gas Holdings’ one-year shareholder returns (HKG: 1600) were, but earnings growth was even better
It hasn’t been the best quarter for Tian Lun Gas Holdings Limited (HKG: 1600) shareholders, since the share price fell 13% during this period. While this may be a setback, it does not negate the good feedback received over the past twelve months. During this time, we have seen the stock easily outperform the market, gaining 18%.
As it has been a strong week for shareholders of Tian Lun Gas Holdings, let’s take a look at the trend in longer-term fundamentals.
See our latest analysis for Tian Lun Gas Holdings
To quote Buffett, âShips will sail around the world but the Flat Earth Society will thrive. There will continue to be wide spreads between price and value in the market … âAn imperfect but reasonable way to assess sentiment trends around a company is to compare earnings per share (EPS) with the course of action.
In the past year, Tian Lun Gas Holdings increased its earnings per share (EPS) by 55%. It’s fair to say that the 18% share price gain has not kept pace with the growth in EPS. Therefore, it seems that the market is not as excited about Tian Lun Gas Holdings as it used to be. It could be an opportunity. Caution is also evident in the low P / E ratio of 4.95.
You can see below how the EPS has evolved over time (find out the exact values ââby clicking on the image).
It’s probably worth noting that CEOs are paid less than the median in companies of similar size. It’s always worth keeping an eye on CEO compensation, but a bigger question is whether the company will increase profits over the years. Before buying or selling a stock, we always recommend a careful review of historical 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. 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 discounted capital increase and spinoff. So, for companies that pay a generous dividend, the TSR is often much higher than the return on the share price. We note that for Tian Lun Gas Holdings, the TSR over the past year was 23%, which is better than the share price performance mentioned above. This is largely the result of his dividend payments!
A different perspective
It is good to see that Tian Lun Gas Holdings has rewarded its shareholders with a total shareholder return of 23% over the past twelve months. Of course, this includes the dividend. As the 1-year TSR is better than the 5-year TSR (the latter standing at 3% per year), it seems that the performance of the stock has improved in recent times. Someone with an optimistic outlook might view the recent improvement in TSR as indicating that the business itself is improving over time. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we have identified 3 warning signs for Tian Lun Gas Holdings that you need to be aware of.
But beware : Tian Lun Gas Holdings May Not Be The Best Stock To Buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).
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.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is 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 material. Simply Wall St has no position in the mentioned stocks.
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