The Universal Cement (TPE:1104) Share Price Has Gained 11% And Shareholders Are Hoping For More

On average, over time, stock markets tend to rise higher. This makes investing attractive. But not every stock you buy will perform as well as the overall market. Over the last year the Universal Cement Corporation (TPE:1104) share price is up 11%, but that's less than the broader market return. Unfortunately the longer term returns are not so good, with the stock falling 7.4% in the last three years.

View our latest analysis for Universal Cement

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

Universal Cement was able to grow EPS by 31% in the last twelve months. This EPS growth is significantly higher than the 11% increase in the share price. Therefore, it seems the market isn't as excited about Universal Cement as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 10.57.

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

We know that Universal Cement has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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, Universal Cement's TSR for the last year was 17%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

Universal Cement shareholders gained a total return of 17% during the year. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 7% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. It's always interesting to track share price performance over the longer term. But to understand Universal Cement better, we need to consider many other factors. For example, we've discovered 1 warning sign for Universal Cement that you should be aware of before investing here.

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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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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