Organisations internationales

Even though Kingdee International Software Group (HKG:268) has lost HK$1.3b market cap in last 7 days, shareholders are still up 66% over 5 years – simplywall.st


Kingdee International Software Group Company Limited (HKG:268) shareholders might be concerned after seeing the share price drop 18% in the last quarter. On the bright side the returns have been quite good over the last half decade. After all, the share price is up a market-beating 66% in that time. While the returns over the last 5 years have been good, we do feel sorry for those shareholders who haven’t held shares that long, because the share price is down 54% in the last three years.

While the stock has fallen 3.7% this week, it’s worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

See our latest analysis for Kingdee International Software Group

Because Kingdee International Software Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 5 years Kingdee International Software Group saw its revenue grow at 14% per year. That’s a fairly respectable growth rate. Revenue has been growing at a reasonable clip, so it’s debatable whether the share price growth of 11% full reflects the underlying business growth. If revenue growth can maintain for long enough, it’s likely profits will flow. There’s no doubt that it can be difficult to value pre-profit companies.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

SEHK:268 Earnings and Revenue Growth October 24th 2023

Kingdee International Software Group is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Kingdee International Software Group stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

While the broader market gained around 14% in the last year, Kingdee International Software Group shareholders lost 11%. 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 11% 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. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

If you are like me, then you will 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 Hong Kong exchanges.

Valuation is complex, but we’re helping make it simple.

Find out whether Kingdee International Software Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.



Source link

Charlotte Lambert

Voyageuse d'idées et jongleuse de mots, je suis Charlotte Lambert, une Spécialiste de l'Art de Rédiger tissant des histoires qui transcendent les frontières. Mon parcours à l'Institut Catholique de Toulouse a été le ferment de ma passion pour l'écriture. Tel un guide littéraire, j'explore les méandres des organisations internationales, les échos des événements mondiaux, les trésors du système éducatif, les énigmes des problèmes sociaux, et les horizons infinis du voyage. Mon stylo danse entre les lignes, infusant chaque article d'une authenticité inébranlable. Joignez-vous à moi dans ce périple où les mots sont les balises qui éclairent le chemin de la compréhension mondiale, où l'événementiel devient un kaléidoscope de perspectives, où l'éducation se dessine avec la richesse de l'avenir, où les enjeux sociaux prennent une nouvelle dimension et où chaque page est un pas vers l'ailleurs.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button