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 2022
It'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.
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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.
我们认为所有投资者都应该尝试购买和持有高质量的多年期获胜者。虽然并非每只股票都表现良好,但当投资者获胜时,他们可以大获全胜。例如, iFast 株式会社 (SGX: AIY) 的股价在过去五年中上涨了558%,对于长期持有人来说,这是一个可观的回报。如果这不能让你考虑长期投资,我们不知道会发生什么。而在上个月,股价上涨了37%。看到投资者如此出色的股价表现确实令我们感到高兴。
事实证明,过去一周对iFast投资者来说是有利可图的,所以让我们看看基本面是否推动了公司的五年业绩。
查看我们对 iFast 的最新分析
不可否认,市场有时是有效的,但价格并不总是能反映潜在的业务表现。评估公司情绪变化的一种有缺陷但合理的方法是将每股收益(EPS)与股价进行比较。
在五年的股价增长中,iFast实现了每年9.4%的复合每股收益(EPS)增长。每股收益的增长低于同期每年46%的股价增长。这表明,如今,市场参与者对公司的重视程度更高。考虑到增长记录,这并不令人震惊。这种乐观情绪反映在其(相当乐观的)市盈率136.88上。
下图显示了 EPS 在一段时间内的跟踪情况(如果你点击图片,你可以看到更多细节)。
新加坡证券交易所:AIY 每股收益增长 2022 年 12 月 8 日
可能值得注意的是,我们在上个季度看到了大量的内幕买盘,我们认为这是积极的。另一方面,我们认为收入和收益趋势是衡量业务的更有意义的指标。可能值得一看我们的 免费的 关于iFast的收益、收入和现金流的报告。
那股息呢?
除了衡量股价回报外,投资者还应考虑股东总回报(TSR)。股价回报仅反映股价的变化,而股东总回报率包括股息的价值(假设股息是再投资的)以及任何折扣融资或分拆的收益。可以公平地说,TSR更全面地描述了支付股息的股票。就iFast而言,其在过去5年中的股东总回报率为627%。这超过了我们之前提到的股价回报率。这在很大程度上是其支付股息的结果!
不同的视角
iFast股东今年下降了29%(包括股息),但市场本身上涨了3.8%。但是,请记住,即使是最好的股票有时也会在十二个月内跑赢市场。好的一面是,长期股东已经赚了钱,在过去的五年中,他们每年增长49%。如果基本面数据继续表明长期可持续增长,那么当前的抛售可能是一个值得考虑的机会。尽管值得考虑市场状况可能对股价产生的不同影响,但还有其他更为重要的因素。例如,冒险——iFast 有 3 个警告标志 我们认为你应该知道。
还有很多其他公司有内部人士买入股票。你可能这样做 不 想错过这个 免费的 内部人士正在收购的成长型公司名单。
请注意,本文引用的市场回报反映了目前在新加坡交易所交易的股票的市场加权平均回报。
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Simply Wall St 的这篇文章本质上是一般性的。 我们仅使用不偏不倚的方法根据历史数据和分析师预测提供评论,我们的文章并非旨在提供财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能未将最新的价格敏感型公司公告或定性材料考虑在内。简而言之,华尔街对上述任何股票都没有头寸。