Reported Earnings • May 08
First quarter 2026 earnings released: EPS: NT$3.00 (vs NT$2.45 in 1Q 2025) First quarter 2026 results: EPS: NT$3.00 (up from NT$2.45 in 1Q 2025). Revenue: NT$2.44b (up 26% from 1Q 2025). Net income: NT$826.5m (up 43% from 1Q 2025). Profit margin: 34% (up from 30% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 84% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$377, the stock trades at a trailing P/E ratio of 35.9x. Average trailing P/E is 28x in the Electronic industry in Taiwan. Total returns to shareholders of 578% over the past three years. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to NT$303, the stock trades at a trailing P/E ratio of 28.9x. Average trailing P/E is 26x in the Electronic industry in Taiwan. Total returns to shareholders of 424% over the past three years. New Risk • Mar 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.1% average weekly change). Reported Earnings • Feb 27
Full year 2025 earnings released: EPS: NT$10.49 (vs NT$7.78 in FY 2024) Full year 2025 results: EPS: NT$10.49 (up from NT$7.78 in FY 2024). Revenue: NT$8.47b (up 33% from FY 2024). Net income: NT$2.48b (up 35% from FY 2024). Profit margin: 29% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Bekanntmachung • Feb 26
Test Research, Inc., Annual General Meeting, May 27, 2026 Test Research, Inc., Annual General Meeting, May 27, 2026. Location: 3 floor no,36-1, huang hsi st., shihlin district, taipei city Taiwan Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to NT$224, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 24x in the Electronic industry in Taiwan. Total returns to shareholders of 305% over the past three years. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$193, the stock trades at a trailing P/E ratio of 19.6x. Average trailing P/E is 22x in the Electronic industry in Taiwan. Total returns to shareholders of 241% over the past three years. Reported Earnings • Nov 09
Third quarter 2025 earnings released: EPS: NT$2.93 (vs NT$1.64 in 3Q 2024) Third quarter 2025 results: EPS: NT$2.93 (up from NT$1.64 in 3Q 2024). Revenue: NT$2.07b (up 27% from 3Q 2024). Net income: NT$693.2m (up 79% from 3Q 2024). Profit margin: 34% (up from 24% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$156, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 22x in the Electronic industry in Taiwan. Total returns to shareholders of 189% over the past three years. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$177, the stock trades at a trailing P/E ratio of 20.8x. Average trailing P/E is 21x in the Electronic industry in Taiwan. Total returns to shareholders of 235% over the past three years. Reported Earnings • Aug 08
Second quarter 2025 earnings released: EPS: NT$2.21 (vs NT$1.97 in 2Q 2024) Second quarter 2025 results: EPS: NT$2.21 (up from NT$1.97 in 2Q 2024). Revenue: NT$2.38b (up 38% from 2Q 2024). Net income: NT$521.5m (up 12% from 2Q 2024). Profit margin: 22% (down from 27% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jun 04
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$131, the stock trades at a trailing P/E ratio of 15.7x. Average trailing P/E is 19x in the Electronic industry in Taiwan. Total returns to shareholders of 121% over the past three years. Declared Dividend • May 31
Dividend increased to NT$5.00 Dividend of NT$5.00 is 52% higher than last year. Ex-date: 13th June 2025 Payment date: 4th July 2025 Dividend yield will be 4.4%, which is higher than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (60% earnings payout ratio) and cash flows (79% cash payout ratio). The dividend has increased by an average of 1.5% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 15% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 14
First quarter 2025 earnings released: EPS: NT$2.45 (vs NT$1.93 in 1Q 2024) First quarter 2025 results: EPS: NT$2.45 (up from NT$1.93 in 1Q 2024). Revenue: NT$1.94b (up 28% from 1Q 2024). Net income: NT$577.8m (up 27% from 1Q 2024). Profit margin: 30% (in line with 1Q 2024). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Bekanntmachung • Apr 30
Test Research, Inc. to Report Q1, 2025 Results on May 07, 2025 Test Research, Inc. announced that they will report Q1, 2025 results on May 07, 2025 Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to NT$93.20, the stock trades at a trailing P/E ratio of 12x. Average trailing P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 52% over the past three years. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (153% cash payout ratio). Share price has been volatile over the past 3 months (6.3% average weekly change). Bekanntmachung • Feb 27
Test Research, Inc., Annual General Meeting, May 28, 2025 Test Research, Inc., Annual General Meeting, May 28, 2025, at 09:00 Taipei Standard Time. Location: 3 floor no,36-1, huang hsi st., shihlin district, taipei city Taiwan Bekanntmachung • Feb 19
Test Research, Inc. to Report Fiscal Year 2024 Results on Feb 26, 2025 Test Research, Inc. announced that they will report fiscal year 2024 results on Feb 26, 2025 New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.4% average weekly change). Reported Earnings • Nov 06
Third quarter 2024 earnings released: EPS: NT$1.64 (vs NT$1.04 in 3Q 2023) Third quarter 2024 results: EPS: NT$1.64 (up from NT$1.04 in 3Q 2023). Revenue: NT$1.63b (up 58% from 3Q 2023). Net income: NT$388.3m (up 58% from 3Q 2023). Profit margin: 24% (in line with 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 31% per year, which means it is well ahead of earnings. Bekanntmachung • Oct 24
Test Research, Inc. to Report Q3, 2024 Results on Nov 01, 2024 Test Research, Inc. announced that they will report Q3, 2024 results on Nov 01, 2024 Valuation Update With 7 Day Price Move • Sep 04
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to NT$132, the stock trades at a trailing P/E ratio of 21.6x. Average trailing P/E is 23x in the Electronic industry in Taiwan. Total returns to shareholders of 174% over the past three years. Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: NT$1.97 (vs NT$0.87 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.97 (up from NT$0.87 in 2Q 2023). Revenue: NT$1.73b (up 85% from 2Q 2023). Net income: NT$466.1m (up 126% from 2Q 2023). Profit margin: 27% (up from 22% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 40% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$122, the stock trades at a trailing P/E ratio of 24.2x. Average trailing P/E is 22x in the Electronic industry in Taiwan. Total returns to shareholders of 145% over the past three years. Bekanntmachung • Jul 30
Test Research, Inc. to Report Q2, 2024 Results on Aug 07, 2024 Test Research, Inc. announced that they will report Q2, 2024 results on Aug 07, 2024 Declared Dividend • May 31
Dividend reduced to NT$3.30 Dividend of NT$3.30 is 27% lower than last year. Ex-date: 14th June 2024 Payment date: 5th July 2024 Dividend yield will be 1.9%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by both earnings (66% earnings payout ratio) and cash flows (81% cash payout ratio). The dividend has remained flat since 10 years ago. However, payments have been volatile during that time. Earnings per share has grown by 1.7% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Bekanntmachung • May 30
Test Research, Inc. Announces Cash Dividends, Payable on July 5, 2024 Test Research, Inc. announced cash dividends of TWD 779,512,800 or TWD 3.3 per share. Ex-rights (ex-dividend) trading date: June 14, 2024. Payment date of common stock cash dividend distribution: July 5, 2024. Ex-rights (ex-dividend) record date is June 22, 2024. Valuation Update With 7 Day Price Move • May 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$147, the stock trades at a trailing P/E ratio of 29.2x. Average trailing P/E is 24x in the Electronic industry in Taiwan. Total returns to shareholders of 211% over the past three years. Reported Earnings • May 13
First quarter 2024 earnings released: EPS: NT$1.93 (vs NT$1.15 in 1Q 2023) First quarter 2024 results: EPS: NT$1.93 (up from NT$1.15 in 1Q 2023). Revenue: NT$1.51b (up 30% from 1Q 2023). Net income: NT$455.3m (up 68% from 1Q 2023). Profit margin: 30% (up from 23% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Bekanntmachung • May 02
Test Research, Inc. to Report Q1, 2024 Results on May 08, 2024 Test Research, Inc. announced that they will report Q1, 2024 results on May 08, 2024 Reported Earnings • Feb 27
Full year 2023 earnings released: EPS: NT$4.24 (vs NT$8.13 in FY 2022) Full year 2023 results: EPS: NT$4.24 (down from NT$8.13 in FY 2022). Revenue: NT$4.44b (down 34% from FY 2022). Net income: NT$1.00b (down 48% from FY 2022). Profit margin: 23% (down from 29% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 7% per year. Bekanntmachung • Feb 22
Test Research, Inc., Annual General Meeting, May 29, 2024 Test Research, Inc., Annual General Meeting, May 29, 2024. Location: 3F., No. 36-1, Huangxi St., Shilin Dist., Taipei City. Taipei City Taiwan Agenda: To approve 2023 Annual Business Report; to approve Audit Committee's Review Report on 2023 Financial Statements; and to approv 2023 Employees' and Directors Remuneration Proposal. Buy Or Sell Opportunity • Feb 01
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 19% to NT$71.00. The fair value is estimated to be NT$59.05, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has grown by 11%. Bekanntmachung • Nov 29
Test Research, Inc. Appoints Dino Tsai as Chief Information Security Officer Test Research, Inc. announced appointment of Dino Tsai/Director of HR Department as Chief Information Security Officer. Effective date is November 28, 2023. Reported Earnings • Nov 04
Third quarter 2023 earnings released: EPS: NT$1.04 (vs NT$2.06 in 3Q 2022) Third quarter 2023 results: EPS: NT$1.04 (down from NT$2.06 in 3Q 2022). Revenue: NT$1.03b (down 33% from 3Q 2022). Net income: NT$246.0m (down 49% from 3Q 2022). Profit margin: 24% (down from 32% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 05
Second quarter 2023 earnings released: EPS: NT$0.87 (vs NT$2.22 in 2Q 2022) Second quarter 2023 results: EPS: NT$0.87 (down from NT$2.22 in 2Q 2022). Revenue: NT$936.1m (down 49% from 2Q 2022). Net income: NT$205.9m (down 61% from 2Q 2022). Profit margin: 22% (down from 28% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 08
Upcoming dividend of NT$4.50 per share at 7.0% yield Eligible shareholders must have bought the stock before 15 June 2023. Payment date: 07 July 2023. Payout ratio is a comfortable 66% and this is well supported by cash flows. Trailing yield: 7.0%. Within top quartile of Taiwanese dividend payers (5.5%). Higher than average of industry peers (4.3%). Reported Earnings • Feb 25
Full year 2022 earnings released: EPS: NT$8.13 (vs NT$5.02 in FY 2021) Full year 2022 results: EPS: NT$8.13 (up from NT$5.02 in FY 2021). Revenue: NT$6.71b (up 20% from FY 2021). Net income: NT$1.92b (up 62% from FY 2021). Profit margin: 29% (up from 21% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 6 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Yow-Shiuan Fu was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 05
Third quarter 2022 earnings released: EPS: NT$2.06 (vs NT$1.22 in 3Q 2021) Third quarter 2022 results: EPS: NT$2.06 (up from NT$1.22 in 3Q 2021). Revenue: NT$1.54b (up 11% from 3Q 2021). Net income: NT$486.5m (up 69% from 3Q 2021). Profit margin: 32% (up from 21% in 3Q 2021). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 06
Second quarter 2022 earnings released: EPS: NT$2.22 (vs NT$1.47 in 2Q 2021) Second quarter 2022 results: EPS: NT$2.22 (up from NT$1.47 in 2Q 2021). Revenue: NT$1.84b (up 19% from 2Q 2021). Net income: NT$524.9m (up 51% from 2Q 2021). Profit margin: 28% (up from 22% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 03
Upcoming dividend of NT$3.30 per share Eligible shareholders must have bought the stock before 10 June 2022. Payment date: 01 July 2022. Payout ratio is a comfortable 53% but the company is paying out more than the cash it is generating. Trailing yield: 4.8%. Lower than top quartile of Taiwanese dividend payers (6.0%). Higher than average of industry peers (4.2%). Reported Earnings • May 06
First quarter 2022 earnings released: EPS: NT$2.50 (vs NT$1.25 in 1Q 2021) First quarter 2022 results: EPS: NT$2.50 (up from NT$1.25 in 1Q 2021). Revenue: NT$1.92b (up 43% from 1Q 2021). Net income: NT$590.1m (up 100% from 1Q 2021). Profit margin: 31% (up from 22% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 7% per year. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 6 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Yow-Shiuan Fu was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Feb 25
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: NT$5.02 (up from NT$4.63 in FY 2020). Revenue: NT$5.61b (up 13% from FY 2020). Net income: NT$1.19b (up 8.5% from FY 2020). Profit margin: 21% (down from 22% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 7% per year. Bekanntmachung • Feb 25
Test Research, Inc., Annual General Meeting, May 25, 2022 Test Research, Inc., Annual General Meeting, May 25, 2022. Location: 3F., No. 36-1, Huangxi St., Shilin Dist Taipei City Taiwan Agenda: To consider 2021 Annual Business Report; to consider Audit Committee's Review Report on 2021 Financial Statements; to consider 2021 employees and Directors Remuneration Proposal; to consider Adoption of 2021 Financial Statements; Adoption of 2021 Earning Distribution Plan; and to consider other matters. Reported Earnings • Nov 07
Third quarter 2021 earnings released: EPS NT$1.22 (vs NT$1.32 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: NT$1.39b (up 2.0% from 3Q 2020). Net income: NT$288.5m (down 7.3% from 3Q 2020). Profit margin: 21% (down from 23% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 9% per year. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS NT$1.47 (vs NT$1.58 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: NT$1.55b (up 4.4% from 2Q 2020). Net income: NT$347.4m (down 6.7% from 2Q 2020). Profit margin: 22% (down from 25% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 3% per year. Upcoming Dividend • Jul 15
Upcoming dividend of NT$3.30 per share Eligible shareholders must have bought the stock before 22 July 2021. Payment date: 10 August 2021. Trailing yield: 5.4%. Within top quartile of Taiwanese dividend payers (5.0%). Higher than average of industry peers (2.9%). Reported Earnings • May 08
First quarter 2021 earnings released: EPS NT$1.25 (vs NT$1.14 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: NT$1.35b (up 16% from 1Q 2020). Net income: NT$295.6m (up 9.4% from 1Q 2020). Profit margin: 22% (down from 23% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 4% per year. Reported Earnings • Feb 26
Full year 2020 earnings released: EPS NT$4.63 (vs NT$3.97 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: NT$4.95b (up 13% from FY 2019). Net income: NT$1.09b (up 16% from FY 2019). Profit margin: 22% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Bekanntmachung • Feb 25
Test Research, Inc., Annual General Meeting, May 26, 2021 Test Research, Inc., Annual General Meeting, May 26, 2021. Location: 3F., No. 36-1, Huangxi St., Shilin Dist Taipei Taiwan Agenda: To consider 2020 Annual Business Report; to consider Audit Committee's Review Report on 2020 Financial Statements; and to consider other matters. Bekanntmachung • Feb 24
Test Research, Inc. Announces Change to the Research and Development Officer, Effective March 1, 2021 Test Research, Inc. announced replacement of KuangPu Wen with Wenming Wu as Director of R&D Division 2 of the company. Effective date is March 1, 2021. Is New 90 Day High Low • Feb 23
New 90-day high: NT$59.10 The company is up 5.0% from its price of NT$56.20 on 25 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 25% over the same period. Bekanntmachung • Jan 28
Test Research, Inc. Announces Retirement of KuangPu Wen as Research and Development Officer Test Research, Inc. announced retirement of KuangPu Wen, Director of Imaging Test Systems RD Division of the Company as research and development officer. Effective date: January 27, 2021. Reported Earnings • Nov 06
Third quarter 2020 earnings released: EPS NT$1.32 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: NT$1.36b (up 30% from 3Q 2019). Net income: NT$311.1m (up 45% from 3Q 2019). Profit margin: 23% (up from 21% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth.