Walsin Technology (TWSE:2492)'s profits have declined over 3 years, delivering a 50% loss to shareholders.

The truth is, if you invest long enough, you'll eventually end up with some losing stocks.But in the long run Walsin Technology Co., Ltd. (TWSE:2492) shareholders have had a particularly tough time over the past three years. Unfortunately, they had to deal with his 55% drop in stock price over this period.

The past three years have been tough for Walsin Technology shareholders, but last week saw a bright spot. So let's take a look at the long-term fundamentals and see if they are driving the negative returns.

Check out our latest analysis for Walsin Technology.

in his essay Graham & Doddsville SuperInvestors Warren Buffett explained that stock prices do not always rationally reflect the value of a company. One way he looks at how market sentiment has changed over time is to look at the interaction between a company's stock price and his earnings per share (EPS).

During the three years that the share price fell, Walsin Technology's earnings per share (EPS) fell by 33% each year. This EPS decline is more severe than the 24% compounded annual share price decline. So the market may not be too worried about the EPS numbers at the moment, or it may have been pricing in some decline for some time.

The image below shows how EPS has changed over time (unveil the exact values ​​by clicking on the image).

this free This interactive report on Walsin Technology's earnings, revenue and cash flow is a great starting point, if you want to investigate the stock further.

What will happen to the dividend?

It's important to consider not only the share price return, but also the total shareholder return for a particular stock. Whereas the price/earnings ratio 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 Walsin Technology's TSR over the last three years was -50%, which is better than the share price return mentioned above. Therefore, the dividend paid by the company is total Shareholder returns.

different perspective

Walsin Technology offered a TSR of 20% over the last 12 months. However, its returns are below the market. But at least you can still make a profit. TSR he has been reduced by 5% per year over 5 years. Therefore, this could be a sign of an upturn in business fortunes. I think it's very interesting to look at stock price over the long term as an indicator of business performance. But to really gain insight, you need to consider other information as well. For example, we discovered that 2 warning signs for Walsin Technology (1 should not be ignored!) Here's what you need to know before investing.

of course, You may find a great investment if you look elsewhere. So take a look at this free A list of companies with expected revenue growth.

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 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.