This week we saw the Jinhui Shipping and Transportation Limited (OB:JIN) share price climb by 16%. But that doesn’t help the fact that the three year return is less impressive. Truth be told the share price declined 44% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.
While the stock has risen 16% in the past week but long term shareholders are still in the red, let’s see what the fundamentals can tell us.
See our latest analysis for Jinhui Shipping and Transportation
Jinhui Shipping and Transportation 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last three years, Jinhui Shipping and Transportation’s revenue dropped 6.5% per year. That’s not what investors generally want to see. The stock has disappointed holders over the last three years, falling 13%, annualized. That makes sense given the lack of either profits or revenue growth. Of course, sentiment could become too negative, and the company may actually be making progress to profitability.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at Jinhui Shipping and Transportation’s financial health with this free report on its balance sheet.
What About The Total Shareholder Return (TSR)?
Investors should note that there’s a difference between Jinhui Shipping and Transportation’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. Jinhui Shipping and Transportation’s TSR of was a loss of 36% for the 3 years. That wasn’t as bad as its share price return, because it has paid dividends.
A Different Perspective
It’s nice to see that Jinhui Shipping and Transportation shareholders have received a total shareholder return of 11% over the last year. That’s better than the annualised return of 1.2% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It’s always interesting to track share price performance over the longer term. But to understand Jinhui Shipping and Transportation better, we need to consider many other factors. For instance, we’ve identified 2 warning signs for Jinhui Shipping and Transportation (1 is potentially serious) that you should be aware of.
Of course Jinhui Shipping and Transportation may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Norwegian exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
