NASDAQ:HIMX) share price is 79% higher than it was a year ago, much better than the market return of around 16% (not including dividends) in the same period. So that should have shareholders smiling. On the other hand, longer term shareholders have had a tougher run, with the stock falling 51% in three years.” data-reactid=”28″>If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. To wit, the Himax Technologies, Inc. (NASDAQ:HIMX) share price is 79% higher than it was a year ago, much better than the market return of around 16% (not including dividends) in the same period. So that should have shareholders smiling. On the other hand, longer term shareholders have had a tougher run, with the stock falling 51% in three years.
View our latest analysis for Himax Technologies ” data-reactid=”29″>View our latest analysis for Himax Technologies
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).
Over the last twelve months Himax Technologies went from profitable to unprofitable. While some may see this as temporary, we’re a skeptical bunch, and so we’re a little surprised to see the share price go up. We might get a clue to explain the share price move by looking to other metrics.
Revenue was pretty stable on last year, so deeper research might be needed to explain the share price rise.
The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
report on how its financial position has changed over time.” data-reactid=”50″>Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
What about the Total Shareholder Return (TSR)?
We’ve already covered Himax Technologies’ share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Himax Technologies’ TSR of 79% for the year exceeded its share price return, because it has paid dividends.
A Different Perspective
Himax Technologies is showing 2 warning signs in our investment analysis , you should know about…” data-reactid=”54″>It’s nice to see that Himax Technologies shareholders have received a total shareholder return of 79% over the last year. Notably the five-year annualised TSR loss of 6.7% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Himax Technologies is showing 2 warning signs in our investment analysis , you should know about…
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Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”57″>This article by Simply Wall St is general in nature. 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.