Tigerair Taiwan's (TWSE:6757) underlying earnings growth outpaced the splendid return generated for shareholders over the past year

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Tigerair Taiwan Co., Ltd. (TWSE:6757) share price has soared 141% in the last 1 year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 13% over the last quarter. It is also impressive that the stock is up 128% over three years, adding to the sense that it is a real winner.

Since the long term performance has been good but there's been a recent pullback of 9.1%, let's check if the fundamentals match the share price.

See our latest analysis for Tigerair Taiwan

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 the last year Tigerair Taiwan grew its earnings per share (EPS) by 187%. It's fair to say that the share price gain of 141% did not keep pace with the EPS growth. So it seems like the market has cooled on Tigerair Taiwan, despite the growth. Interesting.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It is of course excellent to see how Tigerair Taiwan has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Tigerair Taiwan shareholders have received a total shareholder return of 141% over the last year. That's better than the annualised return of 19% 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 - Tigerair Taiwan has 1 warning sign we think you should be aware of.

Of course Tigerair Taiwan 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 Taiwanese exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.