Did You Participate In Any Of TAI-TECH Advanced Electronics' (GTSM:3357) Incredible 576% Return?

March 05, 2021
  •  Updated
September 29, 2022
TPEX:3357
Source: Shutterstock

For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. Just think about the savvy investors who held TAI-TECH Advanced Electronics Co., Ltd. (GTSM:3357) shares for the last five years, while they gained 396%. If that doesn't get you thinking about long term investing, we don't know what will. Also pleasing for shareholders was the 25% gain in the last three months. But this move may well have been assisted by the reasonably buoyant market (up 12% in 90 days).

See our latest analysis for TAI-TECH Advanced Electronics

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

During five years of share price growth, TAI-TECH Advanced Electronics achieved compound earnings per share (EPS) growth of 19% per year. This EPS growth is slower than the share price growth of 38% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.

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

earnings-per-share-growth
GTSM:3357 Earnings Per Share Growth March 6th 2021

This free interactive report on TAI-TECH Advanced Electronics' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, TAI-TECH Advanced Electronics' TSR for the last 5 years was 576%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that TAI-TECH Advanced Electronics shareholders have received a total shareholder return of 269% over one year. And that does include the dividend. That's better than the annualised return of 47% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand TAI-TECH Advanced Electronics better, we need to consider many other factors. For instance, we've identified 2 warning signs for TAI-TECH Advanced Electronics that you should be aware of.

But note: TAI-TECH Advanced Electronics 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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