Did You Miss DIOD Maker of Eco-Friendly Equipment and Nutrition's (MCX:DIOD) 78% Share Price Gain?

By buying an index fund, investors can approximate the average market return. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, DIOD Maker of Eco-Friendly Equipment and Nutrition Public Joint Stock Company (MCX:DIOD) shareholders have seen the share price rise 78% over three years, well in excess of the market return (43%, not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 30% in the last year , including dividends .

See our latest analysis for DIOD Maker of Eco-Friendly Equipment and Nutrition

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

DIOD Maker of Eco-Friendly Equipment and Nutrition became profitable within the last three years. So we would expect a higher share price over the period.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

What about the Total Shareholder Return (TSR)?

We've already covered DIOD Maker of Eco-Friendly Equipment and Nutrition's 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. DIOD Maker of Eco-Friendly Equipment and Nutrition's TSR of 137% for the 3 years exceeded its share price return, because it has paid dividends.

A Different Perspective

We're pleased to report that DIOD Maker of Eco-Friendly Equipment and Nutrition shareholders have received a total shareholder return of 30% over one year. That gain is better than the annual TSR over five years, which is 14%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for DIOD Maker of Eco-Friendly Equipment and Nutrition (1 is a bit concerning!) that you should be aware of before investing here.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.