Stock Analysis

Shareholders Of Advanced Ceramic X (GTSM:3152) Must Be Happy With Their 239% Total Return

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TPEX:3152
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When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of Advanced Ceramic X Corporation (GTSM:3152) stock is up an impressive 181% over the last five years. It's also good to see the share price up 33% over the last quarter. But this could be related to the strong market, which is up 15% in the last three months.

See our latest analysis for Advanced Ceramic X

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over half a decade, Advanced Ceramic X managed to grow its earnings per share at 1.4% a year. This EPS growth is slower than the share price growth of 23% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 48.88.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
GTSM:3152 Earnings Per Share Growth December 31st 2020

Dive deeper into Advanced Ceramic X's key metrics by checking this interactive graph of Advanced Ceramic X'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. 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 Advanced Ceramic X the TSR over the last 5 years was 239%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It's nice to see that Advanced Ceramic X shareholders have received a total shareholder return of 50% over the last year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 28% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 3 warning signs for Advanced Ceramic X (2 don't sit too well with us!) that you should be aware of before investing here.

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 TPEX:3152

Advanced Ceramic X

Advanced Ceramic X Corporation designs, manufactures, and sells RF front-end devices and modules for wireless communication applications in Taiwan, China, the United States, Hong Kong, and internationally.

Flawless balance sheet second-rate dividend payer.

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