Nissan Medical Industries (TLV:NISA) Shareholders Have Enjoyed An Impressive 227% Share Price Gain

Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Nissan Medical Industries Ltd. (TLV:NISA) share price has soared 227% in the last year. Most would be very happy with that, especially in just one year! The last week saw the share price soften some 2.3%. However, the stock hasn't done so well in the longer term, with the stock only up 9.3% in three years.

See our latest analysis for Nissan Medical Industries

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 Nissan Medical Industries grew its earnings per share (EPS) by 93%. This EPS growth is significantly lower than the 227% increase in the share price. This indicates that the market is now more optimistic about the stock.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

Dive deeper into Nissan Medical Industries' key metrics by checking this interactive graph of Nissan Medical Industries's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Nissan Medical Industries' total shareholder return (TSR) and its 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. Nissan Medical Industries' TSR of 239% for the year exceeded its share price return, because it has paid dividends.

A Different Perspective

It's good to see that Nissan Medical Industries has rewarded shareholders with a total shareholder return of 239% in the last twelve months. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Nissan Medical Industries better, we need to consider many other factors. For instance, we've identified 2 warning signs for Nissan Medical Industries that you should be aware of.

Of course Nissan Medical Industries 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 IL 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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