JMicron Technology (GTSM:4925) Has Rewarded Shareholders With An Exceptional 393% Total Return On Their Investment

For us, stock picking is in large part the hunt for the truly magnificent stocks. Not every pick can be a winner, but when you pick the right stock, you can win big. Take, for example, the JMicron Technology Corp. (GTSM:4925) share price, which skyrocketed 329% over three years. It's also good to see the share price up 69% over the last quarter.

Check out our latest analysis for JMicron Technology

While JMicron Technology made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

JMicron Technology actually saw its revenue drop by 4.2% per year over three years. So it's pretty amazing to see the stock price has zoomed up 62% per year in that time. This clear lack of correlation between revenue and share price is surprising to see in a money losing company. At the risk of upsetting holders, this does suggest that hope for a better future is playing a significant role in the share price action.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at JMicron Technology's financial health with this free report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We've already covered JMicron Technology's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for JMicron Technology shareholders, and that cash payout contributed to why its TSR of 393%, over the last 3 years, is better than the share price return.

A Different Perspective

It's good to see that JMicron Technology has rewarded shareholders with a total shareholder return of 142% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 32% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand JMicron Technology better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for JMicron Technology you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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