Transart Graphics (TPE:8481) Has Compensated Shareholders With A Respectable 82% Return On Their Investment

By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, Transart Graphics Co., Ltd. (TPE:8481) shareholders have seen the share price rise 54% over three years, well in excess of the market return (25%, not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 30% , including dividends .

See our latest analysis for Transart Graphics

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During three years of share price growth, Transart Graphics achieved compound earnings per share growth of 51% per year. The average annual share price increase of 15% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time. We'd venture the lowish P/E ratio of 6.34 also reflects the negative sentiment around the stock.

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

This free interactive report on Transart Graphics' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We've already covered Transart Graphics' 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 Transart Graphics' TSR of 82% over the last 3 years is better than the share price return.

A Different Perspective

It's nice to see that Transart Graphics shareholders have gained 30% (in total) over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 22%. Given the track record of solid returns over varying time frames, it might be worth putting Transart Graphics on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Transart Graphics better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Transart Graphics , and understanding them should be part of your investment process.

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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