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Elmos Semiconductor (ETR:ELG) stock performs better than its underlying earnings growth over last five years

Simply Wall St · 5d ago

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Elmos Semiconductor SE (ETR:ELG) stock is up an impressive 257% over the last five years. On top of that, the share price is up 26% in about a quarter.

Since the stock has added €139m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

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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...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over half a decade, Elmos Semiconductor managed to grow its earnings per share at 145% a year. The EPS growth is more impressive than the yearly share price gain of 29% over the same period. Therefore, it seems the market has become relatively pessimistic about the company.

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

earnings-per-share-growth
XTRA:ELG Earnings Per Share Growth January 6th 2026

We know that Elmos Semiconductor has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Elmos Semiconductor will grow revenue in the future.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Elmos Semiconductor's TSR for the last 5 years was 281%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that Elmos Semiconductor has rewarded shareholders with a total shareholder return of 40% in the last twelve months. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 31% per year), it would seem that the stock's performance has improved in recent times. 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 Elmos Semiconductor better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Elmos Semiconductor you should know about.

We will like Elmos Semiconductor better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) 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 German exchanges.