Stock Analysis

Taimide Tech (TWSE:3645 shareholders incur further losses as stock declines 13% this week, taking one-year losses to 15%

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TWSE:3645

Investors can approximate the average market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Investors in Taimide Tech. Inc. (TWSE:3645) have tasted that bitter downside in the last year, as the share price dropped 16%. That's disappointing when you consider the market returned 28%. Even if shareholders bought some time ago, they wouldn't be particularly happy: the stock is down 13% in three years. The last week also saw the share price slip down another 13%.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

View our latest analysis for Taimide Tech

Taimide Tech 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.

In the last year Taimide Tech saw its revenue grow by 16%. We think that is pretty nice growth. Meanwhile, the share price is down 16% over twelve months, which is disappointing given the progress made. You might even wonder if the share price was previously over-hyped. But if revenue keeps growing, then at a certain point the share price would likely follow.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

TWSE:3645 Earnings and Revenue Growth August 9th 2024

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

A Different Perspective

Investors in Taimide Tech had a tough year, with a total loss of 15% (including dividends), against a market gain of about 28%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 0.2% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Taimide Tech better, we need to consider many other factors. For instance, we've identified 2 warning signs for Taimide Tech that you should be aware of.

But note: Taimide Tech 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 Taiwanese exchanges.

Valuation is complex, but we're here to simplify it.

Discover if Taimide Tech might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.