Did You Miss Yeedex Electronic's (GTSM:7556) 31% Share Price Gain?

While Yeedex Electronic Corporation (GTSM:7556) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 30% in the last quarter. Taking a longer term view we see the stock is up over one year. But to be blunt its return of 31% fall short of what you could have got from an index fund (around 31%).

View our latest analysis for Yeedex Electronic

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

During the last year Yeedex Electronic grew its earnings per share (EPS) by 1.9%. This EPS growth is significantly lower than the 31% increase in the share price. This indicates that the market is now more optimistic about the stock.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on Yeedex Electronic'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). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Yeedex Electronic the TSR over the last year was 33%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

With a TSR of 33% over the last year, Yeedex Electronic shareholders would be reasonably content, given that's not far from the broader market return of 31%. However, the share price has actually dropped 30% over the last three months. This could simply be a short term fluctuation, though. Even the biggest winners have their down periods. It's always interesting to track share price performance over the longer term. But to understand Yeedex Electronic better, we need to consider many other factors. Take risks, for example - Yeedex Electronic has 2 warning signs we think you should be aware of.

We will like Yeedex Electronic 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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