It’s been a good week for Ritamix Global Limited (HKG: 1936), which are down 13%. While this may be a setback, it does not negate the good feedback received over the past twelve months. Over the year as a whole, the company easily beat an index fund by gaining 20%.
Although Ritamix Global lost RM 67million from its market cap this week, let’s take a look at its longer-term fundamental trends and see if they have produced any returns.
Check out our latest review for Ritamix Global
While the markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just the underlying performance of the company. By comparing earnings per share (EPS) and changes in the share price over time, we can get a sense of how investors’ attitudes towards a company have changed over time.
Over the past twelve months, Ritamix Global has actually reduced its EPS by 12%.
Given the rise in the share price, we doubt the market will measure EPS progress. Therefore, it seems likely that investors will place more importance on measures other than BPA, for the time being.
Unfortunately, Ritamix Global fell 9.1% year over year. Thus, fundamental metrics do not provide an obvious explanation for the stock price gain.
The image below shows how revenue and income have tracked over time (if you click on the image you can see more details).
Take a closer look at Ritamix Global’s financial health with this free report on its balance sheet.
A different perspective
Ritamix Global shareholders should be satisfied with the total 20% gain over the last twelve months. A substantial portion of that gain came in the past three months, with the stock rising 4.9% during that time. The demand for the stock of several parts pushes the price higher; word might spread about its virtues as a business. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example – Ritamix Global has 2 warning signs (and 1 which is a bit rude) we think you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently trading on the Hong Kong stock exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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