Yieh Phui Enterprise (TWSE:2023) shareholder returns have been strong, earning 100% in 5 years

The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. But Yieh Phui Enterprise Co., Ltd. (TWSE:2023) has fallen short of that second goal, with a share price rise of 88% over five years, which is below the market return. Meanwhile, the last twelve months saw the share price rise 4.5%.

Since the stock has added NT$1.8b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Yieh Phui Enterprise

Yieh Phui Enterprise wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

For the last half decade, Yieh Phui Enterprise can boast revenue growth at a rate of 6.6% per year. That's a pretty good long term growth rate. While the share price has gained 13% per year for five years, that's hardly amazing considering the market also rose. Arguably, that means, the market (previously) expected stronger growth from the company.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Yieh Phui Enterprise's balance sheet strength is a great place to start, if you want to investigate the stock further.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Yieh Phui Enterprise's TSR for the last 5 years was 100%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Yieh Phui Enterprise provided a TSR of 6.6% over the last twelve months. But that return falls short of the market. On the bright side, the longer term returns (running at about 15% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. 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 Yieh Phui Enterprise is showing 1 warning sign in our investment analysis , you should know about...

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Taiwanese exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com