Lung Hwa Electronics (TWSE:2424) shareholder returns have been strong, earning 206% in 3 years

Lung Hwa Electronics Co., Ltd. (TWSE:2424) shareholders have seen the share price descend 20% over the month. But that doesn't undermine the rather lovely longer-term return, if you measure over the last three years. In fact, the share price is up a full 206% compared to three years ago. After a run like that some may not be surprised to see prices moderate. Only time will tell if there is still too much optimism currently reflected in the share price.

The past week has proven to be lucrative for Lung Hwa Electronics investors, so let's see if fundamentals drove the company's three-year performance.

See our latest analysis for Lung Hwa Electronics

Lung Hwa Electronics wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Over the last three years Lung Hwa Electronics has grown its revenue at 50% annually. That's well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 45% compound over three years. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Lung Hwa Electronics stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Lung Hwa Electronics has rewarded shareholders with a total shareholder return of 112% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 6% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. For example, we've discovered 4 warning signs for Lung Hwa Electronics (1 can't be ignored!) that you should be aware of before investing here.

Of course Lung Hwa Electronics may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.