The Ping An Healthcare and Technology (HKG:1833) Share Price Has Gained 61% And Shareholders Are Hoping For More
One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. Just take a look at Ping An Healthcare and Technology Company Limited (HKG:1833), which is up 61%, over three years, soundly beating the market decline of 4.6% (not including dividends).
View our latest analysis for Ping An Healthcare and Technology
Ping An Healthcare and Technology wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over the last three years Ping An Healthcare and Technology has grown its revenue at 38% annually. That's well above most pre-profit companies. The share price rise of 17% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. So now might be the perfect time to put Ping An Healthcare and Technology on your radar. A window of opportunity may reveal itself with time, if the business can trend to profitability.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free report showing analyst forecasts should help you form a view on Ping An Healthcare and Technology
A Different Perspective
Ping An Healthcare and Technology shareholders are down 20% for the year, but the broader market is up 31%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Fortunately the longer term story is brighter, with total returns averaging about 17% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. It's always interesting to track share price performance over the longer term. But to understand Ping An Healthcare and Technology better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Ping An Healthcare and Technology .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
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