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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the A-Sonic Aerospace Limited (SGX:BTJ) share price has flown 122% in the last three years. How nice for those who held the stock! On top of that, the share price is up 80% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.
View our latest analysis for A-Sonic Aerospace
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.
A-Sonic Aerospace became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
Dive deeper into A-Sonic Aerospace's key metrics by checking this interactive graph of A-Sonic Aerospace'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). 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. As it happens, A-Sonic Aerospace's TSR for the last 3 years was 129%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
A Different Perspective
We're pleased to report that A-Sonic Aerospace shareholders have received a total shareholder return of 61% over one year. Of course, that includes the dividend. There's no doubt those recent returns are much better than the TSR loss of 13% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. Before spending more time on A-Sonic Aerospace it might be wise to click here to see if insiders have been buying or selling shares.
But note: A-Sonic Aerospace may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).