Update: Thai Kin (GTSM:6629) Stock Gained 28% In The Last Year

While Thai Kin Co., Ltd. (GTSM:6629) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 14% in the last quarter. Looking on the brighter side, the stock is actually up over twelve months. In that time, it is up 28%, which isn't bad, but is below the market return of 39%.

See our latest analysis for Thai Kin

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. 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.

Thai Kin was able to grow EPS by 36% in the last twelve months. It's fair to say that the share price gain of 28% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Thai Kin as it was before. This could be an opportunity. This cautious sentiment is reflected in its (fairly low) P/E ratio of 10.66.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Thai Kin's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Thai Kin'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. We note that Thai Kin's TSR, at 36% is higher than its share price return of 28%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.

A Different Perspective

In the last year the market returned about 39%, and Thai Kin generated a TSR of 36% for its shareholders. However, the share price has actually dropped 14% over the last three months. It may simply be that the share price got ahead of itself, although you might want to check for any weak results. 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. To that end, you should be aware of the 4 warning signs we've spotted with Thai Kin .

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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