Semiconductor Manufacturing International Shareholders Gained 11% CAGR Over Last Five Years

Stock pickers generally look for stocks that outperform the broader market. Acquiring undervalued companies is one way to excess earnings.For example, in the long term Semiconductor Manufacturing International Corporation (HKG:981) shareholders have enjoyed a 66% share price gain over the past five years, well above a market decline of around 24% (excluding dividends).

Let’s look at the underlying fundamentals over the long term and see if they align with shareholder interests.

See the latest analysis from Semiconductor Manufacturing International

The efficient market hypothesis continues to be taught by some, but it has been proven that markets are overly reactive dynamic systems and investors are not always rational. One imperfect but simple way to look at how the market’s perception of a company has changed is to compare earnings per share (EPS) changes to stock price movements.

During the five-year stock rally, Semiconductor Manufacturing International grew its compound earnings per share (EPS) by 37% annually. This EPS growth outpaces the stock’s average annual gain of 11%. As a result, the market seems to be relatively pessimistic about the company. The rather low P/E ratio of 9.42 also suggests market concerns.

You can see how the EPS changed over time in the image below (click on the graph to see exact values).

We know Semiconductor Manufacturing International has improved earnings over the past three years, but what about the future? freedom Detailed report on the balance sheet.

another point of view

Unfortunately, Semiconductor Manufacturing International’s shareholder numbers have declined by 2.4% over the year. Unfortunately, this is worse than the overall market decline of 1.4%. That said, it’s inevitable that some stocks will be oversold in a down market. The key is to look at the basic deployment. Long-term investors shouldn’t be too upset because they’ve made 11% returns each year over five years. If the fundamental data continue to point to long-term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at stock prices over the long term as an indicator of performance. But for true insight, other information must also be considered.Case in point: we found Two Warning Signs at Semiconductor Manufacturing International You should know, and one of them is a little worrying.

of course, You can find great investments by looking elsewhere. Let’s take a look at this freedom A list of companies whose revenue is expected to increase.

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the Hong Kong exchange.

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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …