Yahoo Finance Did You Manage To Avoid BHCC Holding's (HKG:1552) 43% Share Price Drop?
It's easy to match the overall market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the BHCC Holding Limited (HKG:1552) share price slid 43% over twelve months. That falls noticeably short of the market return of around -8.8%. BHCC Holding hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. The falls have accelerated recently, with the share price down 27% in the last three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
View our latest analysis for BHCC Holding
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.
Unfortunately BHCC Holding reported an EPS drop of 3.7% for the last year. This reduction in EPS is not as bad as the 43% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business. The P/E ratio of 11.68 also points to the negative market sentiment.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on BHCC Holding's earnings, revenue and cash flow.
A Different Perspective
We doubt BHCC Holding shareholders are happy with the loss of 43% over twelve months. That falls short of the market, which lost 8.8%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 27%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. Is BHCC Holding cheap compared to other companies? These 3 valuation measures might help you decide.
Of course BHCC Holding 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 HK exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
