Announcing: Securitag Assembly Group (GTSM:6417) Stock Increased An Energizing 118% In The Last Three Years

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Securitag Assembly Group Co., Ltd. (GTSM:6417) share price has flown 118% in the last three years. How nice for those who held the stock! It's also good to see the share price up 11% over the last quarter. But this could be related to the strong market, which is up 14% in the last three months.

Check out our latest analysis for Securitag Assembly Group

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Securitag Assembly Group was able to grow its EPS at 27% per year over three years, sending the share price higher. We note that the 30% yearly (average) share price gain isn't too far from the EPS growth rate. Coincidence? Probably not. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth.

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

Dive deeper into Securitag Assembly Group's key metrics by checking this interactive graph of Securitag Assembly Group's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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, Securitag Assembly Group's TSR for the last 3 years was 128%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Securitag Assembly Group shareholders are up 43% 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 17% 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 Securitag Assembly Group better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Securitag Assembly Group , and understanding them should be part of your investment process.

Of course Securitag Assembly Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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