Stock Analysis

Did You Participate In Any Of Techno Quartz's (TYO:5217) Incredible 535% Return?

TSE:5217
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For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. For example, the Techno Quartz Inc. (TYO:5217) share price is up a whopping 496% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. We note the stock price is up 3.5% in the last seven days.

Check out our latest analysis for Techno Quartz

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over half a decade, Techno Quartz managed to grow its earnings per share at 55% a year. The EPS growth is more impressive than the yearly share price gain of 43% over the same period. So it seems the market isn't so enthusiastic about the stock these days.

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

earnings-per-share-growth
JASDAQ:5217 Earnings Per Share Growth March 15th 2021

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Techno Quartz, it has a TSR of 535% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Techno Quartz has rewarded shareholders with a total shareholder return of 285% in the last twelve months. And that does include the dividend. That's better than the annualised return of 45% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before deciding if you like the current share price, check how Techno Quartz scores on these 3 valuation metrics.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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Valuation is complex, but we're here to simplify it.

Discover if Techno Quartz might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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About TSE:5217

Techno Quartz

Provides high-precision quartz glass, silicon, and ceramic products primarily for use in semiconductor and liquid crystal display manufacturing equipment, and laboratory instruments in Japan.

Flawless balance sheet with proven track record and pays a dividend.