The Tze Shin International (TPE:2611) Share Price Has Gained 87% And Shareholders Are Hoping For More

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Tze Shin International Co. Ltd. (TPE:2611) share price is 87% higher than it was a year ago, much better than the market return of around 25% (not including dividends) in the same period. That's a solid performance by our standards! It is also impressive that the stock is up 85% over three years, adding to the sense that it is a real winner.

View our latest analysis for Tze Shin International

Because Tze Shin International made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Tze Shin International actually shrunk its revenue over the last year, with a reduction of 26%. Despite the lack of revenue growth, the stock has returned a solid 87% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling Tze Shin International stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Tze Shin International has rewarded shareholders with a total shareholder return of 87% in the last twelve months. That's better than the annualised return of 13% 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. 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. Take risks, for example - Tze Shin International has 3 warning signs (and 1 which can't be ignored) we think you should know about.

Of course Tze Shin International 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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