~'s dull financial results announcement Altec Technology Co., Ltd. (TWSE:3209) The stock price did not fall last week either. However, we believe investors should be aware of some underlying factors that may be concerning.

Check out our latest analysis for Alltek Technology.

Earnings and revenue history
TWSE:3209 Earnings and Revenue History March 26, 2024

One important aspect when assessing earnings quality is to examine how much a company is diluting shareholders. Coincidentally, Alltek Technology issued 6.6% more new shares in the last year. Therefore, each stock receives less profit. Talking about net income without focusing on earnings per share is the same as focusing on the big numbers and ignoring the important smaller numbers. per share value. Click here for a chart of Alltek Technology's EPS.

A look at the impact of Alltek Technology's dilution on earnings per share (EPS)

As you can see above, Alltek Technology has been growing its net profit over the past few years, with a return of 29% per year over three years.In comparison, the income per share It increased by only 19% over the same period. In fact, last year's net profit decreased by 45%. However, the EPS results were even worse, recording a decline of 48%. So we can see that dilution is having some impact on shareholders.

In the long run, if Alltek Technology's profitability improves; per share If the stock price can rise, the stock price should also rise. But on the other hand, we wouldn't be all that excited to see that earnings (not EPS) are improving. For this reason, we can say that his EPS is more important than net income in the long run, assuming our objective is to assess whether a company's stock price will grow.

Note: Investors are always advised to check the health of a company's balance sheet. Click here to see Alltek Technology's balance sheet analysis.

Our take on Alltek Technology's profit performance

Over the last year, Alltek Technology has issued new shares, and we've seen a notable disconnect between its EPS and net income growth. So we think Alltek Technology's statutory profit may be better than its underlying earnings power. But at least the holder can take some solace from the 19% annual growth in his EPS over the past three years. The purpose of this article was to assess how well we can rely on statutory earnings to reflect a company's potential, but there's plenty more to consider. When analyzing a stock, keep in mind that it's worth being aware of the risks involved.For example, Alltek Technology 4 warning signs (Two don't really resonate with me!) Please note this before proceeding further with your analysis.

In this note, we have only covered one factor that sheds light on the nature of Alltek Technology's profits. But there are many other ways to communicate your opinion about a company. Some consider a high return on equity to be a good sign of a high-quality business.So you might want to see this free A collection of companies with a high return on equity, or a list of stocks that insiders are buying.

Valuation is complex, but we help make it simple.

Please check it out alltech technology Could be overvalued or undervalued, check out our comprehensive analysis. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.

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

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