The five-year decline in earnings for Zimplats Holdings ASX:ZIM) isn't encouraging, but shareholders are still up 225% over that period

Simply Wall St.04-01

Zimplats Holdings Limited (ASX:ZIM) shareholders might be concerned after seeing the share price drop 22% in the last quarter. But in stark contrast, the returns over the last half decade have ...

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But in stark contrast, the returns over the last half decade have ...</p>\n\n<a href=\"https://finance.yahoo.com/news/five-decline-earnings-zimplats-holdings-020643321.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance_au","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The five-year decline in earnings for Zimplats Holdings ASX:ZIM) isn't encouraging, but shareholders are still up 225% over that period</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe five-year decline in earnings for Zimplats Holdings ASX:ZIM) isn't encouraging, but shareholders are still up 225% over that period\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-01 10:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/five-decline-earnings-zimplats-holdings-020643321.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Zimplats Holdings Limited (ASX:ZIM) shareholders might be concerned after seeing the share price drop 22% in the last quarter. But in stark contrast, the returns over the last half decade have ...</p>\n\n<a href=\"https://finance.yahoo.com/news/five-decline-earnings-zimplats-holdings-020643321.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ZIM.AU","symbol_name":"ZIMPLATS HOLDINGS LTD","start_time":0,"source_url":"https://finance.yahoo.com/news/five-decline-earnings-zimplats-holdings-020643321.html","article_id":"2424392047","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ohhDwWkuDyaWB19HZ_vpgg--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/c061057d152a1fbbc174c0724f9584ae"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2424392047","pubTimestamp":1711937203,"sourceInfo":{"source_id":"yahoofinance_au","name":"Yahoo Finance AU"},"weMediaInfo":null,"summary":"Zimplats Holdings Limited  shareholders might be concerned after seeing the share price drop 22% in the last quarter. But in stark contrast, the returns over the last half decade have impressed. We think most investors would be happy with the 115% return, over that period. Generally speaking the long term returns will give you a better idea of business quality than short periods can. The more important question is whether the stock is too cheap or too expensive today. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 32% decline over the last twelve months.While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.Check out our latest analysis for Zimplats Holdings. ASX:ZIM Earnings and Revenue Growth April 1st 2024. Zimplats Holdings shareholders are down 28% for the year , but the market itself is up 15%. ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ZIM.AU":"ZIMPLATS HOLDINGS LTD","ZIM":"以星航运"},"translate_title":"Zimplats Holdings（ASX：ZIM）连续五年盈利下滑并不令人鼓舞，但股东在此期间仍增长了225%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ZIM":1,"ZIM.AU":1},"content_text":"Zimplats Holdings Limited (ASX:ZIM) shareholders might be concerned after seeing the share price drop 22% in the last quarter. But in stark contrast, the returns over the last half decade have impressed. We think most investors would be happy with the 115% return, over that period. Generally speaking the long term returns will give you a better idea of business quality than short periods can. The more important question is whether the stock is too cheap or too expensive today. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 32% decline over the last twelve months. \n While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment. \n Check out our latest analysis for Zimplats Holdings \n 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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. \n Zimplats Holdings' earnings per share are down 9.7% per year, despite strong share price performance over five years. \n Essentially, it doesn't seem likely that investors are focused on EPS. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. \n In fact, the dividend has increased over time, which is a positive. It could be that the company is reaching maturity and dividend investors are buying for the yield. We'd posit that the revenue growth over the last five years, of 9.1% per year, would encourage people to invest. \n You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). \n\n\n\n  ASX:ZIM Earnings and Revenue Growth April 1st 2024\n \n\n You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. \nWhat About Dividends?\n 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Zimplats Holdings the TSR over the last 5 years was 225%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! \nA Different Perspective\n Zimplats Holdings shareholders are down 28% for the year (even including dividends), but the market itself is up 15%. 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. On the bright side, long term shareholders have made money, with a gain of 27% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Zimplats Holdings better, we need to consider many other factors. Even so, be aware that  Zimplats Holdings is showing  2 warning signs in our investment analysis , and 1 of those shouldn't be ignored... \n For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. \nPlease note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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. 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