Shareholders Are Thrilled That The Wanshih Electronic (GTSM:6134) Share Price Increased 284%

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Wanshih Electronic Co., Ltd. (GTSM:6134). Its share price is already up an impressive 284% in the last twelve months. It's also good to see the share price up 76% over the last quarter. Looking back further, the stock price is 59% higher than it was three years ago.

See our latest analysis for Wanshih Electronic

While Wanshih Electronic made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Wanshih Electronic actually shrunk its revenue over the last year, with a reduction of 1.5%. So we would not have expected the share price to rise 284%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's good to see that Wanshih Electronic has rewarded shareholders with a total shareholder return of 284% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 24% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Wanshih Electronic better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Wanshih Electronic you should be aware of, and 1 of them is concerning.

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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