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Feb 6

Chi Hua Fitness (GTSM:1593) Has Rewarded Shareholders With An Exceptional 358% Total Return On Their Investment – Simply Wall St

The Chi Hua Fitness Co., Ltd. (GTSM:1593) share price has had a bad week, falling 10%. But in stark contrast, the returns over the last half decade have impressed. It's fair to say most would be happy with 226% the gain in that time. To some, the recent pullback wouldn't be surprising after such a fast rise. Ultimately business performance will determine whether the stock price continues the positive long term trend.

See our latest analysis for Chi Hua Fitness

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 half a decade, Chi Hua Fitness managed to grow its earnings per share at 8.7% a year. This EPS growth is lower than the 27% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Chi Hua Fitness' key metrics by checking this interactive graph of Chi Hua Fitness's earnings, revenue and cash flow.

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Chi Hua Fitness, it has a TSR of 358% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

It's good to see that Chi Hua Fitness has rewarded shareholders with a total shareholder return of 160% in the last twelve months. And that does include the dividend. That gain is better than the annual TSR over five years, which is 36%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Chi Hua Fitness better, we need to consider many other factors. For instance, we've identified 3 warning signs for Chi Hua Fitness that you should be aware of.

We will like Chi Hua Fitness better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

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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. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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Chi Hua Fitness (GTSM:1593) Has Rewarded Shareholders With An Exceptional 358% Total Return On Their Investment - Simply Wall St

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