Shieh Yih Machinery Industry (GTSM:4533) Share Prices Have Dropped 29% In The Last Five Years

Ideally, your overall portfolio should beat the market average. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in Shieh Yih Machinery Industry Co., Ltd. (GTSM:4533), since the last five years saw the share price fall 29%.

See our latest analysis for Shieh Yih Machinery Industry

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 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).

During the five years over which the share price declined, Shieh Yih Machinery Industry's earnings per share (EPS) dropped by 31% each year. This fall in the EPS is worse than the 7% compound annual share price fall. So the market may previously have expected a drop, or else it expects the situation will improve. The high P/E ratio of 96.18 suggests that shareholders believe earnings will grow in the years ahead.

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

Dive deeper into Shieh Yih Machinery Industry's key metrics by checking this interactive graph of Shieh Yih Machinery Industry's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Shieh Yih Machinery Industry'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. Shieh Yih Machinery Industry's TSR of was a loss of 15% for the 5 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Shieh Yih Machinery Industry shareholders are up 21% for the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 3% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Shieh Yih Machinery Industry better, we need to consider many other factors. Take risks, for example - Shieh Yih Machinery Industry has 5 warning signs (and 2 which shouldn't be ignored) we think you should know about.

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 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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