Did You Miss Taiwan Advance Bio-Pharmaceutical's (GTSM:4186) 91% Share Price Gain?

It's always best to build a diverse portfolio of shares, since any stock business could lag the broader market. But if you're going to beat the market overall, you need to have individual stocks that outperform. Taiwan Advance Bio-Pharmaceutical Inc. (GTSM:4186) has done well over the last year, with the stock price up 91% beating the market return of 76% (not including dividends). Having said that, the longer term returns aren't so impressive, with stock gaining just 28% in three years.

See our latest analysis for Taiwan Advance Bio-Pharmaceutical

Because Taiwan Advance Bio-Pharmaceutical made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Taiwan Advance Bio-Pharmaceutical grew its revenue by 36% last year. That's a fairly respectable growth rate. While the share price performed well, gaining 91% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Taiwan Advance Bio-Pharmaceutical stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Taiwan Advance Bio-Pharmaceutical shareholders have received a total shareholder return of 93% over the last year. Notably the five-year annualised TSR loss of 3% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Taiwan Advance Bio-Pharmaceutical better, we need to consider many other factors. For example, we've discovered 5 warning signs for Taiwan Advance Bio-Pharmaceutical (2 don't sit too well with us!) that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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