Global Mixed Mode Technology's (TWSE:8081) 38% CAGR outpaced the company's revenue growth over the same five-year period.

The most you can lose in stocks is 100% of your money (assuming you don't use leverage). But on the bright side, if you have a really good stock, you can make a lot more than 100%. Here's a good example: Global Mixmode Technology Co., Ltd. (TWSE:8081) shares are up 265% in five years, and it's also good to see the stock is up 23% in the last quarter, though this could also be tied to a strong market that's up 14% in the past three months.

After last week's big rally, it's worth determining whether the longer-term returns are being driven by improving fundamentals.

Read our latest analysis on Global Mixed-Mode Technology

There's no denying that markets are efficient sometimes, but prices do not necessarily reflect underlying business 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 the five years that the share price grew, Global Mixed-Mode Technology achieved a compound annual growth rate of 23% in earnings per share (EPS). This EPS growth rate is lower than the 30% compound annual growth rate of the share price. Therefore, it is reasonable to assume that the market values ​​the company more highly than it did five years ago. This is not necessarily surprising given the five-year track record of earnings 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 This interactive report on Global Mixed-Mode Technology's earnings, revenue and cash flow is a great starting point if you want to investigate the stock further.

What about dividends?

It is important to consider the price return, as well as the total shareholder return, for a specific stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, as well as dividends, based on the assumption that the dividends are reinvested. It can be said that the TSR gives a more comprehensive picture of the return generated by a stock. Coincidentally, Global Mixed-Mode Technology's TSR for the last 5 years was 393%, which exceeds the price return mentioned earlier. So the dividends paid by the company were total Shareholder returns.

A different perspective

It's good to see that Global Mixed Mode Technology shareholders have received a total shareholder return of 81% over the past year, which includes dividends. This yield is better than the five-year annualized TSR of 38%. So sentiment towards the company seems to have been positive recently. In the best case scenario, this could suggest some real business momentum, and now could be a good time to dig deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to gain true insight, other information needs to be considered as well. For example, we have identified: Two Warning Signs of Global Mixed-Mode Technology (1 being a bit uncomfortable for us) Just something to be aware of.

However, please note: Global Mixed-Mode Technology may not be the best stock to buySo, take a look at this free A list of interesting companies with past earnings growth (and future growth forecast).

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.