Introducing Taiwan IC Packaging (GTSM:3372), A Stock That Climbed 35% In The Last Year

There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But if you choose that path, you're going to buy some stocks that fall short of the market. For example, the Taiwan IC Packaging Corporation (GTSM:3372), share price is up over the last year, but its gain of 35% trails the market return. On the other hand, longer term shareholders have had a tougher run, with the stock falling 33% in three years.

View our latest analysis for Taiwan IC Packaging

Taiwan IC Packaging 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Taiwan IC Packaging actually shrunk its revenue over the last year, with a reduction of 4.0%. The lacklustre gain of 35% over twelve months, is not a bad result given the falling revenue. We'd want to see progress to profitability before getting too interested in this stock.

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

Take a more thorough look at Taiwan IC Packaging's financial health with this free report on its balance sheet.

A Different Perspective

Taiwan IC Packaging shareholders gained a total return of 35% during the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 6% endured over half a decade. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Taiwan IC Packaging better, we need to consider many other factors. For instance, we've identified 1 warning sign for Taiwan IC Packaging that you should be aware of.

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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