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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the Tianli Education International Holdings Limited (HKG:1773) share price is up 83% in the last year, clearly besting the market return of around -6.4% (not including dividends). So that should have shareholders smiling. Tianli Education International Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.
See our latest analysis for Tianli Education International Holdings
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 Tianli Education International Holdings grew its earnings per share (EPS) by 8.4%. The share price gain of 83% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on Tianli Education International Holdings's earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. In the case of Tianli Education International Holdings, it has a TSR of 85% for the last year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Tianli Education International Holdings shareholders should be happy with the total gain of 85% over the last twelve months , including dividends . We regret to report that the share price is down 7.4% over ninety days. Shorter term share price moves often don't signify much about the business itself. Before forming an opinion on Tianli Education International Holdings you might want to consider these 3 valuation metrics.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.