Stock Analysis

The JSL Construction & Development (TPE:2540) Share Price Is Up 183% And Shareholders Are Boasting About It

TWSE:2540
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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For instance the JSL Construction & Development Co., Ltd. (TPE:2540) share price is 183% higher than it was three years ago. That sort of return is as solid as granite. Also pleasing for shareholders was the 19% gain in the last three months. But this move may well have been assisted by the reasonably buoyant market (up 20% in 90 days).

View our latest analysis for JSL Construction & Development

There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

JSL Construction & Development was able to grow its EPS at 114% per year over three years, sending the share price higher. This EPS growth is higher than the 41% average annual increase in the share price. Therefore, it seems the market has moderated its expectations for growth, somewhat.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
TSEC:2540 Earnings Per Share Growth January 18th 2021

Dive deeper into JSL Construction & Development's key metrics by checking this interactive graph of JSL Construction & Development's earnings, revenue and cash flow.

A Different Perspective

It's good to see that JSL Construction & Development has rewarded shareholders with a total shareholder return of 155% in the last twelve months. That's better than the annualised return of 17% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with JSL Construction & Development , and understanding them should be part of your investment process.

We will like JSL Construction & Development 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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