Ton Yi Industrial's(TPE:9907) Share Price Is Down 29% Over The Past Five Years.

The main aim of stock picking is to find the market-beating stocks. But every investor is virtually certain to have both over-performing and under-performing stocks. So we wouldn't blame long term Ton Yi Industrial Corp. (TPE:9907) shareholders for doubting their decision to hold, with the stock down 29% over a half decade. On the other hand, we note it's up 8.3% in about a month. However, this may be a matter of broader market optimism, since stocks are up 5.3% in the same time.

Check out our latest analysis for Ton Yi Industrial

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

Looking back five years, both Ton Yi Industrial's share price and EPS declined; the latter at a rate of 2.6% per year. This reduction in EPS is less than the 7% annual reduction in the share price. This implies that the market is more cautious about the business these days.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Ton Yi Industrial's key metrics by checking this interactive graph of Ton Yi Industrial's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Ton Yi Industrial's total shareholder return (TSR) and its share price change, which we've covered above. 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. Its history of dividend payouts mean that Ton Yi Industrial's TSR, which was a 20% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

Ton Yi Industrial provided a TSR of 4.2% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 4% endured over half a decade. So this might be a sign the business has turned its fortunes around. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Ton Yi Industrial has 1 warning sign we think you should be aware of.

But note: Ton Yi Industrial may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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