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Anji Microelectronics Technology (Shanghai)'s (SHSE:688019) 28% CAGR outpaced the company's earnings growth over the same three-year period

Simply Wall St ·  Aug 6, 2022 21:35

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Anji Microelectronics Technology (Shanghai) Co., Ltd. (SHSE:688019) share price has flown 108% in the last three years. How nice for those who held the stock! It's also good to see the share price up 44% over the last quarter.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

Check out our latest analysis for Anji Microelectronics Technology (Shanghai)

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During three years of share price growth, Anji Microelectronics Technology (Shanghai) achieved compound earnings per share growth of 43% per year. The average annual share price increase of 28% is actually lower than the EPS growth. Therefore, it seems the market has moderated its expectations for growth, somewhat. Of course, with a P/E ratio of 113.31, the market remains optimistic.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growthSHSE:688019 Earnings Per Share Growth August 7th 2022

We know that Anji Microelectronics Technology (Shanghai) has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Anji Microelectronics Technology (Shanghai) rewarded shareholders with a total shareholder return of 15% over the last year. And yes, that does include the dividend. The TSR has been even better over three years, coming in at 28% per year. It's always interesting to track share price performance over the longer term. But to understand Anji Microelectronics Technology (Shanghai) better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Anji Microelectronics Technology (Shanghai) (including 1 which doesn't sit too well with us) .

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CN exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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