Stock Analysis

Introducing Delta Electronics (TPE:2308), The Stock That Zoomed 159% In The Last Year

TWSE:2308
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Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Delta Electronics, Inc. (TPE:2308). Its share price is already up an impressive 159% in the last twelve months. It's also good to see the share price up 16% over the last quarter. But this could be related to the strong market, which is up 14% in the last three months. Also impressive, the stock is up 122% over three years, making long term shareholders happy, too.

Check out our latest analysis for Delta 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...' 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.

During the last year Delta Electronics grew its earnings per share (EPS) by 10%. This EPS growth is significantly lower than the 159% increase in the share price. This indicates that the market is now more optimistic about the stock.

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

earnings-per-share-growth
TSEC:2308 Earnings Per Share Growth March 18th 2021

We know that Delta Electronics has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Delta Electronics will grow revenue in the future.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Delta Electronics the TSR over the last year was 167%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Delta Electronics has rewarded shareholders with a total shareholder return of 167% 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 19% 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. Before deciding if you like the current share price, check how Delta Electronics scores on these 3 valuation metrics.

Of course Delta Electronics may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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