Introducing AVT Natural Products (NSE:AVTNPL), The Stock That Zoomed 106% In The Last Year

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example AVT Natural Products Limited (NSE:AVTNPL). Its share price is already up an impressive 106% in the last twelve months. On top of that, the share price is up 28% in about a quarter. But this could be related to the strong market, which is up 26% in the last three months. However, the stock hasn't done so well in the longer term, with the stock only up 14% in three years.

View our latest analysis for AVT Natural Products

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

During the last year AVT Natural Products grew its earnings per share (EPS) by 63%. This EPS growth is significantly lower than the 106% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into AVT Natural Products' key metrics by checking this interactive graph of AVT Natural Products's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between AVT Natural Products' total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for AVT Natural Products shareholders, and that cash payout contributed to why its TSR of 107%, over the last year, is better than the share price return.

A Different Perspective

We're pleased to report that AVT Natural Products shareholders have received a total shareholder return of 107% over one year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 7.9% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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 instance, we've identified 2 warning signs for AVT Natural Products that you should be aware of.

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 IN 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.
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