The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But when you choose a truly thriving business, you can TO DO more than 100%. For example, the Grand Venture Technology Limited (SGX:JLB) the stock price has risen 131% over the past five years. Most would be very happy.
Let’s look at the long-term underlying fundamentals and see if they are consistent with shareholder returns.
Check out our latest analysis for Grand Venture Technology
Although markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just underlying company performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
During five years of share price growth, Grand Venture Technology achieved compound earnings per share (EPS) growth of 2.3% per year. This EPS growth is lower than the average annual share price increase of 18%. This suggests that market participants hold the company in higher regard these days. And that’s hardly surprising given the history of growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
This free interactive report on Grand Venture Technology projects profits, revenue and cash flow is a great place to start if you want to further research the stock.
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and stock price performance. While 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 . So for companies that pay a generous dividend, the TSR is often much higher than the share price return. We note that for Grand Venture Technology the TSR over the last 5 years was 136%, which is better than the return of the stock mentioned above. And there’s no point guessing that dividend payments largely explain this divergence!
Grand Venture Technology shareholders received a total return of 4.9% over the year. But this return is lower than that of the market. It’s probably a good sign that the company has an even better long-term track record, having provided shareholders with an annual TSR of 19% over five years. It’s entirely possible that the company will continue to perform prowess, even if share price gains slow. It’s always interesting to follow share price performance over the long term. But to better understand Grand Venture Technology, we need to consider many other factors. Think about the risks, for example. Every business has them, and we spotted them 1 warning sign for Grand Venture Technology you should know that.