How Much Did Elite Advanced Laser's(TPE:3450) Shareholders Earn From Share Price Movements Over The Last Three Years?

Many investors define successful investing as beating the market average over the long term. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long term Elite Advanced Laser Corporation (TPE:3450) shareholders have had that experience, with the share price dropping 42% in three years, versus a market return of about 49%. The last week also saw the share price slip down another 6.9%.

View our latest analysis for Elite Advanced Laser

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Elite Advanced Laser saw its EPS decline at a compound rate of 34% per year, over the last three years. In comparison the 16% compound annual share price decline isn't as bad as the EPS drop-off. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in.

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

Dive deeper into Elite Advanced Laser's key metrics by checking this interactive graph of Elite Advanced Laser's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Elite Advanced Laser's TSR for the last 3 years was -36%, 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

It's good to see that Elite Advanced Laser has rewarded shareholders with a total shareholder return of 27% in the last twelve months. And that does include the dividend. That certainly beats the loss of about 0.6% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. Before deciding if you like the current share price, check how Elite Advanced Laser scores on these 3 valuation metrics.

But note: Elite Advanced Laser may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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