WuXi Xinje ElectricLtd's (SHSE:603416) one-year earnings growth trails the 95% YoY shareholder returns

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the WuXi Xinje Electric Co.,Ltd. (SHSE:603416) share price is up 94% in the last 1 year, clearly besting the market return of around 14% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! It is also impressive that the stock is up 76% over three years, adding to the sense that it is a real winner.

The past week has proven to be lucrative for WuXi Xinje ElectricLtd investors, so let's see if fundamentals drove the company's one-year performance.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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 last year WuXi Xinje ElectricLtd grew its earnings per share (EPS) by 14%. The share price gain of 94% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that WuXi Xinje ElectricLtd has improved its bottom line lately, but is it going to grow revenue? Check if analysts think WuXi Xinje ElectricLtd will grow revenue in the future.

A Different Perspective

It's nice to see that WuXi Xinje ElectricLtd shareholders have received a total shareholder return of 95% over the last year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 12%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before deciding if you like the current share price, check how WuXi Xinje ElectricLtd scores on these 3 valuation metrics.

Of course WuXi Xinje ElectricLtd 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 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 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.