Ras Al Khaimah National Insurance Company P.S.C (ADX:RAKNIC) Shareholders Have Enjoyed A 66% Share Price Gain

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. To wit, the Ras Al Khaimah National Insurance Company P.S.C. (ADX:RAKNIC) share price is 66% higher than it was a year ago, much better than the market return of around 10% (not including dividends) in the same period. So that should have shareholders smiling. Having said that, the longer term returns aren't so impressive, with stock gaining just 8.8% in three years.

See our latest analysis for Ras Al Khaimah National Insurance Company P.S.C

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

Ras Al Khaimah National Insurance Company P.S.C was able to grow EPS by 70% in the last twelve months. We note that the earnings per share growth isn't far from the share price growth (of 66%). This makes us think the market hasn't really changed its sentiment around the company, in the last year. It makes intuitive sense that the share price and EPS would grow at similar rates.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

This free interactive report on Ras Al Khaimah National Insurance Company P.S.C's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Ras Al Khaimah National Insurance Company P.S.C rewarded shareholders with a total shareholder return of 66% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 6%. The improving returns to shareholders suggests the stock is becoming more popular with time. 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 Ras Al Khaimah National Insurance Company P.S.C that you should be aware of.

We will like Ras Al Khaimah National Insurance Company P.S.C 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 AE 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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