Despite shrinking by NT$1.5b in the past week, Paiho Shih Holdings (TWSE:8404) shareholders are still up 36% over 1 year

It's been a soft week for Paiho Shih Holdings Corporation (TWSE:8404) shares, which are down 12%. But over the last year the share price action has been satisfactory. We say this because the stock (which is up 36%) actually surpassed the market return of (31%).

Since the long term performance has been good but there's been a recent pullback of 12%, let's check if the fundamentals match the share price.

See our latest analysis for Paiho Shih Holdings

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.

Paiho Shih Holdings went from making a loss to reporting a profit, in the last year.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We think that the revenue growth of 24% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

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

We know that Paiho Shih Holdings has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling Paiho Shih Holdings stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We're pleased to report that Paiho Shih Holdings shareholders have received a total shareholder return of 36% over one year. There's no doubt those recent returns are much better than the TSR loss of 4% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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 learn about the 4 warning signs we've spotted with Paiho Shih Holdings (including 3 which don't sit too well with us) .

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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.