Giant Plus Technology (TWSE:8105) has generated some impressive shareholder returns, returning 63% over five years.

If you hold stocks for the long term, you naturally want them to have positive returns, but more than anything, you want to see them perform better than the market average. Giant Plus Technology Co., Ltd. (TWSE:8105) fell short of the second target, with the stock up 59% over five years, below the market return. Zooming out, the stock is up 11% over the past year, which is respectable.

The stock has added NT$773 million to its market cap in the past week alone, so let’s take a look at whether fundamental performance is driving long-term returns.

Check out our latest analysis for Giantplus Technology

In his essay Graham and Doddsville’s Superinvestors Warren Buffett has said that share prices do not necessarily rationally reflect a company’s value, and one imperfect but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) and the share price.

In the five years that the share price has been rising, Giantplus Technology has gone from a loss to a profit, which is generally seen as a positive, so we’d expect the share price to rise.

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

Get a better understanding of Giantplus Technology’s key metrics by checking this interactive graph of Giantplus Technology’s earnings, revenue and cash flow.

What about dividends?

It is important to consider the price return as well as the total shareholder return for a given stock. While the 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 is fair to say that the TSR gives a more complete picture for stocks that pay a dividend. Coincidentally, Giantplus Technology’s TSR for the last 5 years was 63%, which exceeds the price return mentioned earlier. So the dividends paid by the company total Shareholder returns.

A different perspective

Giantplus Technology delivered a TSR of 12% in the last twelve months. Unfortunately, this falls short of the market return. Happily, this return was higher than the five-year average annual return of 10%, suggesting the company may be improving over time. I find it very interesting to look at share price over the long term as a proxy for business performance. However, to gain real insight, other information needs to be considered. For example, we have identified the following: 1 warning sign for Giantplus Technology Something you should know.

of course, You may find a great investment by looking elsewhere. Take a look at this free A list of companies that are expected to see revenue growth.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Taiwan exchanges.

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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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