Zhejiang Dun’an Artificial Environment (SZSE:002011) is down 3.7% this week, but still offers shareholders an impressive 42% CAGR over three years.

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After buying shares in a company, the worst outcome (assuming no leverage) is to lose all the money you put into it. But on the contrary, you can get a lot of benefits. more If the company’s performance is good, it will be 100% or more. In other words, Zhejiang Dun’an Artificial Environment Co., Ltd. (SZSE:002011) The stock price has increased 189% over the past three years. This kind of return is solid as granite. Last week, the stock price fell 3.7%.

Zhejiang Dun’an Artificial Environment lost CA$501m from its market capitalization this week, but let’s take a look at the long-term fundamental trend to see if it paid off.

See our latest analysis on Zhejiang Dun’an Artificial Environment.

Although the efficient markets hypothesis continues to be taught by some, it has been proven that markets are dynamic systems that overreact and that investors are not always rational. 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.

Zhejiang Dun’an Artificial Environment has made a profit in the past three years. As we’ve seen here, this type of transition can be an inflection point that justifies a strong rally in stock prices.

The image below shows how EPS has changed over time (unveil the exact values ​​by clicking on the image).

Growth rate of earnings per share
SZSE:002011 Earnings per share growth (March 26, 2024)

It is of course great to see that Zhejiang Dun’an Artificial Environment has been able to grow its profits over the years, but the future is more important to shareholders. Check this out if you are thinking of buying or selling Zhejiang Dun’an Manufactured Environment stocks. free Detailed report on balance sheet.

different perspective

It’s good to see that Zhejiang Dun’an Artificial Environmental shareholders have received a total shareholder return of 0.6% over the past year. However, this falls short of the 16% annual TSR that the company has provided shareholders each year over five years. A pessimistic view would be that while there are periods when stocks are at their best, prices may simply be stagnant while the business itself continues. It’s always interesting to track stock performance over the long term. However, many other factors need to be considered to better understand the Zhejiang Dun’an artificial environment. For example, we identified 1 warning sign about Zhejiang Dun’an artificial environment What you need to know.

However, please note: Zhejiang Dun’an Artificial Environment may not be the best stock to buy.So take a look at this free A list of interesting companies that have grown their earnings in the past (and are predicted to grow in the future).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese exchanges.

Valuation is complex, but we help make it simple.

Please check it out Zhejiang Dun’an artificial environment Could be overvalued or undervalued, check out our comprehensive analysis. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.

See free analysis

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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