TaiDoc Technology (GTSM:4736) Has Gifted Shareholders With A Fantastic 122% Total Return On Their Investment

If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to see it rise more than the market average. But TaiDoc Technology Corporation (GTSM:4736) has fallen short of that second goal, with a share price rise of 81% over five years, which is below the market return. However, more recent buyers should be happy with the increase of 22% over the last year.

See our latest analysis for TaiDoc Technology

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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over half a decade, TaiDoc Technology managed to grow its earnings per share at 24% a year. The EPS growth is more impressive than the yearly share price gain of 13% over the same period. Therefore, it seems the market has become relatively pessimistic about the company. This cautious sentiment is reflected in its (fairly low) P/E ratio of 10.68.

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

We know that TaiDoc Technology has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on TaiDoc Technology's balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We've already covered TaiDoc Technology's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for TaiDoc Technology shareholders, and that cash payout contributed to why its TSR of 122%, over the last 5 years, is better than the share price return.

A Different Perspective

TaiDoc Technology shareholders are up 25% for the year. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 17% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. 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. Even so, be aware that TaiDoc Technology is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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