IFAST's (SGX:AIY) 49% CAGR Outpaced the Company's Earnings Growth Over the Same Five-year Period
IFAST's (SGX:AIY) 49% CAGR Outpaced the Company's Earnings Growth Over the Same Five-year Period
We think all investors should try to buy and hold high quality multi-year winners. While not every stock performs well, when investors win, they can win big. For example, the iFAST Corporation Ltd. (SGX:AIY) share price is up a whopping 558% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. And in the last month, the share price has gained 37%. It really delights us to see such great share price performance for investors.
The past week has proven to be lucrative for iFAST investors, so let's see if fundamentals drove the company's five-year performance.
See our latest analysis for iFAST
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During five years of share price growth, iFAST achieved compound earnings per share (EPS) growth of 9.4% per year. This EPS growth is slower than the share price growth of 46% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 136.88.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
SGX:AIY Earnings Per Share Growth December 8th 2022It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. It might be well worthwhile taking a look at our free report on iFAST's earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of iFAST, it has a TSR of 627% 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
iFAST shareholders are down 29% for the year (even including dividends), but the market itself is up 3.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 49% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - iFAST has 3 warning signs we think you should be aware of.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
我們認為所有投資者都應嘗試購買並持有高質量的多年贏家。雖然並非每個股票表現良好,但當投資者贏得勝利時,他們可以贏得大獎。例如, 怡豐有限公司 SGX:AIY)股價在過去半年上漲了 558%,對於長期持有者來說,這是一個可觀的回報。如果這不能讓您考慮長期投資,我們不知道會發生什麼。在上個月,股價上漲了 37%。看到投資者如此出色的股價表現,我們真的很高興。
事實證明,在過去的一周對 IFast 投資者來說是有利可圖的,所以讓我們看看基本面是否會推動公司的五年業績。
查看我們有關 iFast 的最新分析
無可否認,市場有時是有效的,但價格並不總是反映基礎的業務表現。評估公司周圍情緒如何變化的一個有缺陷但合理的方法是將每股盈利(EPS)與股價進行比較。
在五年的股價上漲期間,iFast 實現每股複合盈利每年增長 9.4%。在同一期間,每股盈餘的增長速度較每年 46% 的股價增長緩慢。這表明,市場參與者持有的公司在更高的方面,這些天。考慮到增長的記錄,這幾乎沒有令人震驚。這種有利情緒反映在其 136.88(相當樂觀的)市盈率中。
下圖顯示 EPS 在一段時間內如何追蹤 (如果您按一下影像,就可以看到更多細節)。
新加坡:艾伊每股盈利增長 2022 年 12 月 8 日可能值得注意的是,我們在上個季度看到了重大的內部購買,我們認為這是積極的。另一方面,我們認為收入和盈利趨勢是業務更有意義的措施。這可能是非常值得看看我們的 自由 報告 iFast 的收益,收入和現金流量。
股息呢?
除了衡量股價回報外,投資者還應考慮股東總回報(TSR)。股價回報僅反映了股價的變化,但 TSR 包括股息的價值(假設股息已經再投資)以及任何折扣資本集資或分拆的利益。可以公平地說,TSR 為支付股息的股票提供了更完整的了解。就 iFast 而言,在過去 5 年中,它的 TSR 為 627%。這超出了我們前面提到的股價回報。這在很大程度上是其股息支付的結果!
不同的角度
iFast 股東全年下跌 29%(甚至包括股息),但市場本身上漲了 3.8%。但是,請記住,即使是最好的股票,也有時會在十二個月內表現優於市場。從光明的一面來看,長期股東已經賺錢,在半十年內每年收益 49%。如果基本面數據繼續表明長期可持續增長,那麼當前的拋售可能是值得考慮的機會。儘管值得考慮市場狀況對股價可能產生的不同影響,但還有其他因素更為重要。冒險,例如-iFast 有 3 警告標誌 我們認為您應該知道。
還有很多其他公司有內部人士購買股票。你可能會這樣做 不 想錯過這個 自由 內部人士正在購買的成長公司名單。
請注意,本文中引用的市場回報反映了目前在新加坡交易所交易的股票的市場加權平均回報。
對這篇文章有反饋嗎?關注內容? 取得聯繫 直接與我們聯繫。 或者,通過電子郵件發送電子郵件給編輯團隊。
這篇文章由簡單牆聖是一般性質. 我們僅使用公正的方法,根據歷史數據和分析師預測提供評論,我們的文章並不打算作為財務建議。 它並不構成購買或出售任何股票的建議,也不會考慮您的目標或您的財務狀況。我們的目標是為您帶來由基本數據驅動的長期集中分析。請注意,我們的分析可能不會考慮最新的價格敏感公司公告或定性材料。簡易華街在提及的任何股票中都沒有倉位。
譯文內容由第三人軟體翻譯。
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