Stock Analysis

Investors Who Bought Mosel Vitelic (TPE:2342) Shares Five Years Ago Are Now Up 136%

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TWSE:2342
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When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, the Mosel Vitelic Inc. (TPE:2342) share price has soared 136% in the last half decade. Most would be very happy with that. Also pleasing for shareholders was the 18% gain in the last three months. But this move may well have been assisted by the reasonably buoyant market (up 20% in 90 days).

View our latest analysis for Mosel Vitelic

Mosel Vitelic isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

For the last half decade, Mosel Vitelic can boast revenue growth at a rate of 3.1% per year. That's not a very high growth rate considering the bottom line. So we wouldn't have expected to see the share price to have lifted 19% for each year during that time, but that's what happened. Shareholders should be pretty happy with that, although interested investors might want to examine the financial data more closely to see if the gains are really justified. Some might suggest that the sentiment around the stock is rather positive.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
TSEC:2342 Earnings and Revenue Growth February 8th 2021

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Mosel Vitelic's total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Mosel Vitelic's TSR of 139% over the last 5 years is better than the share price return.

A Different Perspective

We're pleased to report that Mosel Vitelic shareholders have received a total shareholder return of 95% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 19% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. You could get a better understanding of Mosel Vitelic's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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About TWSE:2342

Mosel Vitelic

Mosel Vitelic Inc. manufactures and sells power semiconductor components and power management ICs in Taiwan.

Flawless balance sheet with outstanding track record.

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