Transformers and Rectifiers (India) (NSE: TRIL) Delivers Splendid 226% YoY Return to Shareholders, Up 14% in Just Last Week
The maximum you can lose on any stock (assuming you’re not using leverage) is 100% of your money. On the flip side, if you find a high quality business to buy (at the right price), you can more than double your money! For example, the Transformers and Rectifiers (India) Limited The share price (NSE: TRIL) has climbed 224% in the past year. Most would be very happy, especially in just a year! It even increased by 14% last week. And shareholders have performed well over the long term as well, with an increase of 107% over the past three years.
After a strong gain last week, it’s worth seeing if long-term returns have been boosted by improving fundamentals.
Check out our latest review for transformers and rectifiers (India)
It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. An imperfect but reasonable way to gauge how sentiment is changing around a company is to compare earnings per share (EPS) with the stock price.
Over the past year, Transformers and Rectifiers (India) has increased its earnings per share from a loss to a profit.
When a company has just transitioned to profitability, growing earnings per share is not always the best way to look at the evolution of the share price.
We doubt that the modest dividend yield of 0.3% is doing much to support the share price. However, the 31% year-over-year revenue growth would help. We are seeing that some companies are cutting their profits in order to accelerate revenue growth.
You can see how earnings and income have evolved over time below (find out the exact values by clicking on the image).
If you are planning to buy or sell transformer and rectifier stock (India), you should check out this FREE detailed report on its balance sheet.
A different perspective
It is nice to see that the shareholders of Transformers and Rectifiers (India) have received a total shareholder return of 226% over the past year. And that includes the dividend. There is no doubt that these recent returns are much better than TSR’s loss of 1.9% per year over five years. It makes us a little suspicious, but the company may have changed course. I find it very interesting to look at the long-term share price as an indicator of company performance. But to really understand better, we have to take other information into account as well. Consider, for example, the ever-present specter of investment risk. We have identified 3 warning signs with Transformers and Rectifiers (India) (at least 2 which are not too suitable for us), and understanding them should be part of your investment process.
For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks that currently trade on the IN exchanges.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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