The Taiwan Allied Container Terminal (GTSM:5601) Share Price Is Up 30% And Shareholders Are Holding On

Low-cost index funds make it easy to achieve average market returns. But across the board there are plenty of stocks that underperform the market. Unfortunately for shareholders, while the Taiwan Allied Container Terminal Corp. (GTSM:5601) share price is up 30% in the last three years, that falls short of the market return. Zooming in, the stock is up a respectable 8.0% in the last year.

Check out our latest analysis for Taiwan Allied Container Terminal

Given that Taiwan Allied Container Terminal only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 3 years Taiwan Allied Container Terminal saw its revenue grow at 0.3% per year. Considering the company is losing money, we think that rate of revenue growth is uninspiring. The market doesn't seem too pleased with the revenue growth rate, given the modest 9% annual share price gain over three years. It seems likely that we'll have to zoom in on the data more closely to understand if there is an opportunity here.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Taiwan Allied Container Terminal's balance sheet strength is a great place to start, if you want to investigate the stock further.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. In the case of Taiwan Allied Container Terminal, it has a TSR of 35% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Taiwan Allied Container Terminal shareholders gained a total return of 8.9% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 2% over half a decade This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand Taiwan Allied Container Terminal better, we need to consider many other factors. Even so, be aware that Taiwan Allied Container Terminal is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

We will like Taiwan Allied Container Terminal better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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