Stock Analysis

Introducing Delta Asia International (GTSM:6762), A Stock That Climbed 71% In The Last Year

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TPEX:6762
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Delta Asia International Corporation (GTSM:6762) shareholders might be concerned after seeing the share price drop 22% in the last quarter. But that doesn't change the reality that over twelve months the stock has done really well. In that time we've seen the stock easily surpass the market return, with a gain of 71%.

Check out our latest analysis for Delta Asia International

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 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).

During the last year Delta Asia International grew its earnings per share (EPS) by 118%. This EPS growth is significantly higher than the 71% increase in the share price. Therefore, it seems the market isn't as excited about Delta Asia International as it was before. This could be an opportunity.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growth
GTSM:6762 Earnings Per Share Growth January 12th 2021

Dive deeper into Delta Asia International's key metrics by checking this interactive graph of Delta Asia International's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Delta Asia International's TSR for the last year was 74%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

Delta Asia International shareholders should be happy with the total gain of 74% over the last twelve months, including dividends. Unfortunately the share price is down 22% over the last quarter. Shorter term share price moves often don't signify much about the business itself. It's always interesting to track share price performance over the longer term. But to understand Delta Asia International better, we need to consider many other factors. For instance, we've identified 1 warning sign for Delta Asia International that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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About TPEX:6762

Delta Asia International

Delta Asia International Corporation manufactures and sells medical device parts and final products in Taiwan.

Flawless balance sheet with questionable track record.

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