It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Silicon Integrated Systems Corp. (TPE:2363) share price is 109% higher than it was three years ago. How nice for those who held the stock! Also pleasing for shareholders was the 77% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.
View our latest analysis for Silicon Integrated Systems
Silicon Integrated Systems 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last 3 years Silicon Integrated Systems saw its revenue grow at 3.9% per year. Considering the company is losing money, we think that rate of revenue growth is uninspiring. In comparison, the share price rise of 28% per year over the last three years is pretty impressive. 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. It may be that the market is pretty optimistic about Silicon Integrated Systems if you look to the bottom line.
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 Silicon Integrated Systems's financial health with this free report on its balance sheet.
A Different Perspective
It's good to see that Silicon Integrated Systems has rewarded shareholders with a total shareholder return of 73% in the last twelve months. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 11% 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Silicon Integrated Systems you should be aware of, and 1 of them is potentially serious.
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. Thank you for reading.