Yeong Guan Energy Technology Group (TPE:1589) Share Prices Have Dropped 50% In The Last Five Years

For many, the main point of investing is to generate higher returns than the overall market. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in Yeong Guan Energy Technology Group Co., Ltd. (TPE:1589), since the last five years saw the share price fall 50%.

Check out our latest analysis for Yeong Guan Energy Technology Group

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Yeong Guan Energy Technology Group became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics might give us a better handle on how its value is changing over time.

We don't think that the 0.5% is big factor in the share price, since it's quite small, as dividends go. The revenue fall of 1.4% per year for five years is neither good nor terrible. But if the market expected durable top line growth, then that could explain the share price weakness.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We know that Yeong Guan Energy Technology Group has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Yeong Guan Energy Technology Group in this interactive graph of future profit estimates.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Yeong Guan Energy Technology Group's TSR for the last 5 years was -44%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Yeong Guan Energy Technology Group has rewarded shareholders with a total shareholder return of 48% in the last twelve months. And that does include the dividend. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Yeong Guan Energy Technology Group better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Yeong Guan Energy Technology Group (including 1 which is shouldn't be ignored) .

We will like Yeong Guan Energy Technology Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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