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Yahoo
17-05-2025
- Business
- Yahoo
Churchill China (LON:CHH) investors are sitting on a loss of 57% if they invested three years ago
If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long term Churchill China plc (LON:CHH) shareholders have had a particularly rough ride in the last three year. So they might be feeling emotional about the 62% share price collapse, in that time. The more recent news is of little comfort, with the share price down 50% in a year. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. Our free stock report includes 2 warning signs investors should be aware of before investing in Churchill China. Read for free now. 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. During the unfortunate three years of share price decline, Churchill China actually saw its earnings per share (EPS) improve by 15% per year. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Or else the company was over-hyped in the past, and so its growth has disappointed. It's worth taking a look at other metrics, because the EPS growth doesn't seem to match with the falling share price. Given the healthiness of the dividend payments, we doubt that they've concerned the market. It's good to see that Churchill China has increased its revenue over the last three years. But it's not clear to us why the share price is down. It might be worth diving deeper into the fundamentals, lest an opportunity goes begging. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). If you are thinking of buying or selling Churchill China stock, you should check out this FREE detailed report on its balance sheet. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Churchill China, it has a TSR of -57% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! Churchill China shareholders are down 47% for the year (even including dividends), but the market itself is up 4.9%. 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 9% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality 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. To that end, you should be aware of the 2 warning signs we've spotted with Churchill China . Of course Churchill China may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.


Bloomberg
09-05-2025
- Business
- Bloomberg
How the Lizard King Built a Reptile Empire Selling $50,000 Geckos
Shortly after graduating from high school, Brian Butler started loading trucks at a UPS freight facility in Denver. Working nights for the next 16 years, he sometimes found himself so strapped for cash he had to choose between buying groceries and paying his mortgage. Today he's got a $350,000 pad overlooking the Caribbean, two homes in Denver and a six-figure stock portfolio. The source of his wealth? Crested geckos, docile creatures that resemble diminutive cartoon dragons. 'I bought a condo in Belize,' the 37-year-old says. 'Every time I visit, I think to myself, 'I sell lizards on the internet. How the hell did I end up here?''