Investors in China Aviation Oil (Singapore) (SGX:G92) have unfortunately lost 44% over the last five years

  • In Business
  • 2022-12-05 02:55:29Z
  • By Simply Wall St.

For many, the main point of investing is to generate higher returns than the overall market. But the main game is to find enough winners to more than offset the losers So we wouldn't blame long term China Aviation Oil (Singapore) Corporation Ltd (SGX:G92) shareholders for doubting their decision to hold, with the stock down 52% over a half decade. On the other hand, we note it's up 9.2% in about a month. However, this may be a matter of broader market optimism, since stocks are up 4.3% in the same time.

It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.

Check out our latest analysis for China Aviation Oil (Singapore)

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the five years over which the share price declined, China Aviation Oil (Singapore)'s earnings per share (EPS) dropped by 17% each year. The share price decline of 13% per year isn't as bad as the EPS decline. So investors might expect EPS to bounce back -- or they may have previously foreseen the EPS decline.

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

It might be well worthwhile taking a look at our free report on China Aviation Oil (Singapore)'s earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, China Aviation Oil (Singapore)'s TSR for the last 5 years was -44%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

While the broader market gained around 4.8% in the last year, China Aviation Oil (Singapore) shareholders lost 15% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 8% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand China Aviation Oil (Singapore) better, we need to consider many other factors. Take risks, for example - China Aviation Oil (Singapore) has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at)

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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here


More Related News

Roper Technologies Full Year 2022 Earnings: EPS Beats Expectations
Roper Technologies Full Year 2022 Earnings: EPS Beats Expectations

Roper Technologies ( NYSE:ROP ) Full Year 2022 Results Key Financial Results Revenue: US$5.37b (down 7.0% from FY...

McCormick Full Year 2022 Earnings: Misses Expectations
McCormick Full Year 2022 Earnings: Misses Expectations

McCormick ( NYSE:MKC ) Full Year 2022 Results Key Financial Results Revenue: US$6.35b (flat on FY 2021). Net income...

GATX Full Year 2022 Earnings: EPS Misses Expectations
GATX Full Year 2022 Earnings: EPS Misses Expectations

GATX ( NYSE:GATX ) Full Year 2022 Results Key Financial Results Revenue: US$1.27b (up 1.2% from FY 2021). Net income...

Bullish insiders bet ₪2.5m on G. Willi-Food International Ltd. (NASDAQ:WILC)
Bullish insiders bet ₪2.5m on G. Willi-Food International Ltd. (NASDAQ:WILC)

Quite a few insiders have dramatically grown their holdings in G. Willi-Food International Ltd. ( NASDAQ:WILC ) over...

Is It Time To Consider Buying Sirius XM Holdings Inc. (NASDAQ:SIRI)?
Is It Time To Consider Buying Sirius XM Holdings Inc. (NASDAQ:SIRI)?

Let's talk about the popular Sirius XM Holdings Inc. ( NASDAQ:SIRI ). The company's shares received a lot of attention...

Leave a Comment

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

Cancel reply


  • SMM Panel Pakistan
    (2022-12-05 06:19:17Z)

    Well done for creating such a helpful website. Your blog is not only helpful but also incredibly creative. Smmworld

  • 호게임
    (2022-12-05 12:37:06Z)

    of course like your web site however you need to test the spelling on quite a few of your posts. Several of them are rife with spelling issues and I in finding it very bothersome to tell the truth then again I will certainly come back again.

  • 호게임
    (2022-12-05 13:12:41Z)

    The the next occasion I just read a weblog, Hopefully that this doesnt disappoint me up to this blog. I mean, It was my replacement for read, but I personally thought youd have something fascinating to talk about. All I hear is often a couple of whining about something that you could fix when you werent too busy in search of attention.


Top News: Business