Investors ignore increasing losses at Taiwan Glass Ind (TWSE:1802) as stock jumps 7.8% this past week

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. Long term Taiwan Glass Ind. Corp. (TWSE:1802) shareholders would be well aware of this, since the stock is up 125% in five years. And in the last week the share price has popped 7.8%.

Since it's been a strong week for Taiwan Glass Ind shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Taiwan Glass Ind

Because Taiwan Glass Ind made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last 5 years Taiwan Glass Ind saw its revenue grow at 1.4% per year. Put simply, that growth rate fails to impress. So we wouldn't have expected to see the share price to have lifted 18% for each year during that time, but that's what happened. While we wouldn't be overly concerned, it might be worth checking whether you think the fundamental business gains really justify the share price action. Some might suggest that the sentiment around the stock is rather positive.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Taiwan Glass Ind's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered Taiwan Glass Ind's share price action, but we should also mention its total shareholder return (TSR). 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. Its history of dividend payouts mean that Taiwan Glass Ind's TSR of 149% over the last 5 years is better than the share price return.

A Different Perspective

Taiwan Glass Ind shareholders are up 0.8% for the year. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 20% per year for five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. 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. Case in point: We've spotted 1 warning sign for Taiwan Glass Ind you should be aware of.

We will like Taiwan Glass Ind better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.