United Laboratories International Holdings' (HKG:3933) 130% return outpaced the company's earnings growth over the same one-year period

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the The United Laboratories International Holdings Limited (HKG:3933) share price had more than doubled in just one year - up 118%. It's also good to see the share price up 29% over the last quarter. However, the longer term returns haven't been so impressive, with the stock up just 23% in the last three years.

Since it's been a strong week for United Laboratories International Holdings shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for United Laboratories International Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

United Laboratories International Holdings was able to grow EPS by 127% in the last twelve months. We note that the earnings per share growth isn't far from the share price growth (of 118%). So this implies that investor expectations of the company have remained pretty steady. We don't think its coincidental that the share price is growing at a similar rate to the earnings per share.

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

It is of course excellent to see how United Laboratories International Holdings has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at United Laboratories International Holdings' financial health with this free report on its balance sheet.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, United Laboratories International Holdings' TSR for the last 1 year was 130%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

We're pleased to report that United Laboratories International Holdings shareholders have received a total shareholder return of 130% over one year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 10% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand United Laboratories International Holdings better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for United Laboratories International Holdings you should be aware of, and 1 of them is potentially serious.

Of course United Laboratories International Holdings 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 Hong Kong exchanges.

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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.