PixArt Imaging (GTSM:3227) Has Gifted Shareholders With A Fantastic 179% Total Return On Their Investment

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term PixArt Imaging Inc. (GTSM:3227) shareholders would be well aware of this, since the stock is up 139% in five years. We note the stock price is up 2.2% in the last seven days.

See our latest analysis for PixArt Imaging

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

Over half a decade, PixArt Imaging managed to grow its earnings per share at 31% a year. The EPS growth is more impressive than the yearly share price gain of 19% over the same period. So one could conclude that the broader market has become more cautious towards the stock.

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

We know that PixArt Imaging has improved its bottom line lately, but is it going to grow revenue? Check if analysts think PixArt Imaging will grow revenue in the future.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, PixArt Imaging's TSR for the last 5 years was 179%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

PixArt Imaging shareholders are up 58% for the year (even including dividends). But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 23% per year over five year. This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand PixArt Imaging better, we need to consider many other factors. Even so, be aware that PixArt Imaging is showing 2 warning signs in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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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