Introducing Kuen Ling Machinery Refrigerating (GTSM:4527), A Stock That Climbed 18% In The Last Year

We believe investing is smart because history shows that stock markets go higher in the long term. But not every stock you buy will perform as well as the overall market. Unfortunately for shareholders, while the Kuen Ling Machinery Refrigerating Co., Ltd. (GTSM:4527) share price is up 18% in the last year, that falls short of the market return. In contrast, the longer term returns are negative, since the share price is 9.1% lower than it was three years ago.

Check out our latest analysis for Kuen Ling Machinery Refrigerating

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

Kuen Ling Machinery Refrigerating was able to grow EPS by 49% in the last twelve months. It's fair to say that the share price gain of 18% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Kuen Ling Machinery Refrigerating as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 10.08.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Kuen Ling Machinery Refrigerating's key metrics by checking this interactive graph of Kuen Ling Machinery Refrigerating's earnings, revenue and cash flow.

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 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Kuen Ling Machinery Refrigerating, it has a TSR of 26% for the last year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Kuen Ling Machinery Refrigerating provided a TSR of 26% over the last twelve months. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 9% per year over five year. This suggests the company might be improving over time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Kuen Ling Machinery Refrigerating is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

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