Unlocking Growth: How CNOOC Energy Technology & Services (SHSE:600968) Delivered Impressive 63% Returns to Investors in Just Five Years

Shareholders might be worried to see CNOOC Energy Technology & Services Limited (SHSE:600968) down 10% in just one month. However, if we look at the bigger picture, the stock has performed well over the last five years, climbing a solid 46% during that time.

Let’s dig into the company’s performance and see if it aligns with what investors expect.

While markets can reflect company performance, share prices don’t always match earnings. By examining earnings per share (EPS) alongside share price changes, we can understand how company perception has evolved among investors.

Over the past five years, CNOOC Energy Technology & Services has grown its EPS by 19% each year. This is significantly higher than the 8% rise in share price, suggesting that the market is being more cautious about the stock. This caution is seen in its relatively low P/E ratio of 11.02.

In the chart below, you can see how EPS has changed over the years (click to see more details).

CNOOC Energy Technology & Services has improved its earnings, but will it grow revenue as well? You can explore this with a free report that includes analyst revenue forecasts.

What About Dividends?

When looking at investment returns, it’s important to differentiate between total shareholder return (TSR) and share price return. TSR gives a fuller picture by including cash dividends (assuming they are reinvested) and any capital raisings or spin-offs. For CNOOC Energy Technology & Services, the TSR over the last five years was 63%, which outshines the standard share price return. This boost mainly comes from its dividends!

A Different Perspective

It’s worth noting that shareholders of CNOOC Energy Technology & Services saw a total return of 28% in the last year, including dividends. This is better than the 10% TSR over the past five years. This suggests that sentiment around the company has become more positive recently. An optimistic view might be that the recent improvements signal better times ahead for the business.

Before diving into the current share price, it might be wise to check how CNOOC Energy Technology & Services stacks up on a few valuation metrics.

Insider buying can be a good sign for potential investors. A hint for the future—there’s a free list of undervalued stocks with recent significant insider buying that you might find interesting.

Note: The market returns discussed here reflect averages of stocks trading on Chinese exchanges.

Have 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 serve as financial advice. It does not recommend any stock for buying or selling, nor does it consider your individual financial situation.