JD Health International's (HKG:6618) one-year total shareholder returns outpace the underlying earnings growth

It hasn't been the best quarter for JD Health International Inc. (HKG:6618) shareholders, since the share price has fallen 16% in that time. But that doesn't change the fact that the returns over the last year have been very strong. Indeed, the share price is up an impressive 104% in that time. So it may be that the share price is simply cooling off after a strong rise. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

Since the long term performance has been good but there's been a recent pullback of 3.8%, let's check if the fundamentals match the share price.

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To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year JD Health International grew its earnings per share (EPS) by 79%. This EPS growth is significantly lower than the 104% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that JD Health International has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling JD Health International stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that JD Health International shareholders have received a total shareholder return of 104% over one year. There's no doubt those recent returns are much better than the TSR loss of 11% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. Before spending more time on JD Health International it might be wise to click here to see if insiders have been buying or selling shares.

We will like JD Health International better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) 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 Hong Kong exchanges.

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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.