Introducing CHANG TYPE Industrial (TPE:1541), A Stock That Climbed 43% In The Last Year

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the CHANG TYPE Industrial Co., Ltd. (TPE:1541) share price is 43% higher than it was a year ago, much better than the market return of around 31% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! The longer term returns have not been as good, with the stock price only 16% higher than it was three years ago.

See our latest analysis for CHANG TYPE Industrial

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 the last year CHANG TYPE Industrial grew its earnings per share (EPS) by 124%. This EPS growth is significantly higher than the 43% increase in the share price. Therefore, it seems the market isn't as excited about CHANG TYPE Industrial as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 10.75.

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

Dive deeper into CHANG TYPE Industrial's key metrics by checking this interactive graph of CHANG TYPE Industrial's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that CHANG TYPE Industrial shareholders have received a total shareholder return of 43% over one year. That gain is better than the annual TSR over five years, which is 5%. 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. 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 CHANG TYPE Industrial you should be aware of.

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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