Introducing Hosoya Pyro-Engineering (TYO:4274), The Stock That Zoomed 228% In The Last Five Years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of Hosoya Pyro-Engineering Co., Ltd. (TYO:4274) stock is up an impressive 228% over the last five years. And in the last month, the share price has gained 26%.

Check out our latest analysis for Hosoya Pyro-Engineering

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over half a decade, Hosoya Pyro-Engineering managed to grow its earnings per share at 1.4% a year. This EPS growth is slower than the share price growth of 27% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This optimism is visible in its fairly high P/E ratio of 50.62.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It might be well worthwhile taking a look at our free report on Hosoya Pyro-Engineering's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Hosoya Pyro-Engineering's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Hosoya Pyro-Engineering's TSR of 246% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

It's nice to see that Hosoya Pyro-Engineering shareholders have received a total shareholder return of 45% over the last year. That's better than the annualised return of 28% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Hosoya Pyro-Engineering better, we need to consider many other factors. Even so, be aware that Hosoya Pyro-Engineering is showing 2 warning signs in our investment analysis , you should know about...

Of course Hosoya Pyro-Engineering 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 JP 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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