While it may not be enough for some shareholders, we think it is good to see the China Aerospace International Holdings Limited (HKG:31) share price up 25% in a single quarter. But that cant change the reality that over the longer term (five years), the returns have been really quite dismal. Indeed, the share price is down 70% in the period. So were hesitant to put much weight behind the short term increase. Of course, this could be the start of a turnaround.

Check out our latest analysis for China Aerospace International Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Looking back five years, both China Aerospace International Holdings share price and EPS declined; the latter at a rate of 3.6% per year. This reduction in EPS is less than the 22% annual reduction in the share price. So it seems the market was too confident about the business, in the past. The less favorable sentiment is reflected in its current P/E ratio of 4.38.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

This free interactive report on China Aerospace International Holdings earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of China Aerospace International Holdings, it has a TSR of -66% for the last 5 years. That exceeds its share price return that we previously mentioned. And theres no prize for guessing that the dividend payments largely explain the divergence!

Were pleased to report that China Aerospace International Holdings shareholders have received a total shareholder return of 0.8% over one year. And that does include the dividend. That certainly beats the loss of about 11% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. For example, weve discovered 3 warning signs for China Aerospace International Holdings (1 is potentially serious!) that you should be aware of before investing here.

We will like China Aerospace International Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

PromotedWhen trading China Aerospace International Holdings or any other investment, use the platform considered by many to be the Professionals Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.

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. 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. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Read the original here:

What Type Of Returns Would China Aerospace International Holdings'(HKG:31) Shareholders Have Earned If They Purchased Their SharesFive Years Ago? -...