If You Had Bought I-HWA IndustrialLtd (TPE:1456) Stock A Year Ago, You Could Pocket A 143% Gain Today

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example I-HWA Industrial Co.,Ltd (TPE:1456). Its share price is already up an impressive 143% in the last twelve months. It's also good to see the share price up 26% over the last quarter. But this could be related to the strong market, which is up 14% in the last three months. Looking back further, the stock price is 83% higher than it was three years ago.

Check out our latest analysis for I-HWA IndustrialLtd

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

I-HWA IndustrialLtd went from making a loss to reporting a profit, in the last year.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

I-HWA IndustrialLtd's revenue actually dropped 33% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on I-HWA IndustrialLtd's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that I-HWA IndustrialLtd shareholders have received a total shareholder return of 143% over one year. That gain is better than the annual TSR over five years, which is 16%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that I-HWA IndustrialLtd is showing 4 warning signs in our investment analysis , and 2 of those are a bit concerning...

But note: I-HWA IndustrialLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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