E-House (China) Enterprise Holdings Limited (HKG: 2048) Shareholders should be happy to see the stock price rise 25% last week. But that doesn’t change the fact that the returns over the past three years have been overwhelming. Indeed, the share price has fallen 89% over the past three years. So we’re relieved for long term owners to see some improvement. But the more important question is whether the underlying business can still justify a higher price tag. While a drop like this is definitely a blow to the body, money is not as important as health and happiness.
While the past three years have been difficult for shareholders of E-House (China) Enterprise Holdings, the past week has shown signs of promise. So let’s take a look at longer-term fundamentals and see if they’ve been driving negative returns.
See our latest analysis for E-House (China) Enterprise Holdings
It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. By comparing earnings per share (EPS) and changes in stock prices over time, we can get an idea of how investors’ attitudes towards a company have changed over time.
E-House (China) Enterprise Holdings saw its share price decline in the three years in which its EPS also fell, falling at a loss. Since the company has fallen into a loss position, it is difficult to compare the change in EPS with the change in the share price. However, we can say that we expect the share price to fall in this scenario.
The graph below illustrates the evolution of EPS over time (reveal the exact values by clicking on the image).
This free E-House (China) Enterprise Holdings’ interactive earnings, revenue and cash flow report is a great place to start if you want to delve deeper into the stock.
A different perspective
The past twelve months have not been good for E-House (China) Enterprise Holdings shares, which cost holders 84%, including dividends, as the market was up about 9.5%. Of course, the long term matters more than the short term, and even big stocks will sometimes have a bad year. Shareholders have lost 24% per year over the past three years, so the fall in the share price has become more pronounced over the past year; a potential symptom of unresolved challenges. Although Baron Rothschild once said to “buy when there is blood on the streets, even if the blood is yours”, he also focuses on high quality stocks with a solid outlook. It is always interesting to follow the evolution of stock prices over the long term. But to better understand E-House (China) Enterprise Holdings, there are many other factors that we need to consider. However, be aware that E-House (China) Enterprise Holdings shows 4 warning signs in our investment analysis , and 1 of them is significant …
Sure E-House (China) Enterprise Holdings may not be the best stock to buy. So you might want to see this free collection of growth stocks.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently trading 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 documents. Simply Wall St has no position in the mentioned stocks.
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