Tai Ping Carpets International (HKG:146) Has Compensated Shareholders With A 38% Return On Their Investment

While not a mind-blowing move, it is good to see that the Tai Ping Carpets International Limited (HKG:146) share price has gained 30% in the last three months. But if you look at the last five years the returns have not been good. In fact, the share price is down 27%, which falls well short of the return you could get by buying an index fund.

See our latest analysis for Tai Ping Carpets International

Tai Ping Carpets International isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last five years Tai Ping Carpets International saw its revenue shrink by 26% per year. That puts it in an unattractive cohort, to put it mildly. It seems pretty reasonable to us that the share price dipped 5% per year in that time. This loss means the stock shareholders are probably pretty annoyed. Risk averse investors probably wouldn't like this one much.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What about the Total Shareholder Return (TSR)?

We've already covered Tai Ping Carpets International's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Tai Ping Carpets International's TSR of 38% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

Tai Ping Carpets International shareholders gained a total return of 19% during the year. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 7% per year over five year. This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand Tai Ping Carpets International better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Tai Ping Carpets International (including 1 which is a bit unpleasant) .

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

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This article by Simply Wall St is general in nature. 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.
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