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    Sumiseki HoldingsInc's (TSE:1514) 43% CAGR outpaced the company's earnings growth over the same five-year period

    Simply Wall St·01/08/2026 22:49:21
    語音播報

    We think all investors should try to buy and hold high quality multi-year winners. While the best companies are hard to find, but they can generate massive returns over long periods. To wit, the Sumiseki Holdings,Inc. (TSE:1514) share price has soared 422% over five years. This just goes to show the value creation that some businesses can achieve. In more good news, the share price has risen 15% in thirty days.

    After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

    We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

    There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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, Sumiseki HoldingsInc managed to grow its earnings per share at 74% a year. This EPS growth is higher than the 39% average annual increase in the share price. Therefore, it seems the market has become relatively pessimistic about the company. The reasonably low P/E ratio of 11.53 also suggests market apprehension.

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

    earnings-per-share-growth
    TSE:1514 Earnings Per Share Growth January 8th 2026

    This free interactive report on Sumiseki HoldingsInc's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

    What About Dividends?

    When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Sumiseki HoldingsInc, it has a TSR of 507% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

    A Different Perspective

    While the broader market gained around 29% in the last year, Sumiseki HoldingsInc shareholders lost 14% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 43%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. For instance, we've identified 1 warning sign for Sumiseki HoldingsInc that you should be aware of.

    We will like Sumiseki HoldingsInc 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 Japanese exchanges.