Stock Analysis

The Anli International (GTSM:5223) Share Price Has Gained 137%, So Why Not Pay It Some Attention?

TPEX:5223
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Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Anli International Co., Ltd. (GTSM:5223) share price has soared 137% in the last year. Most would be very happy with that, especially in just one year! We note the stock price is up 4.0% in the last seven days. We'll need to follow Anli International for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

See our latest analysis for Anli International

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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 Anli International grew its earnings per share (EPS) by 50%. The share price gain of 137% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

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

earnings-per-share-growth
GTSM:5223 Earnings Per Share Growth February 9th 2021

Dive deeper into Anli International's key metrics by checking this interactive graph of Anli International'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. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Anli International, it has a TSR of 141% for the last year. 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

Anli International boasts a total shareholder return of 141% for the last year (that includes the dividends) . The more recent returns haven't been as impressive as the longer term returns, coming in at just 9.5%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Anli International is showing 1 warning sign in our investment analysis , you should know about...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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