Stock Analysis

Shareholders Are Thrilled That The Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C) (DFM:AMAN) Share Price Increased 152%

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DFM:AMAN
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Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Dubai Islamic Insurance & Reinsurance Co. (Aman) (P.J.S.C) (DFM:AMAN) share price had more than doubled in just one year - up 152%. Looking back further, the stock price is 31% higher than it was three years ago.

View our latest analysis for Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C)

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 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.

Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C) was able to grow EPS by 171% in the last twelve months. This EPS growth is reasonably close to the 152% increase in the share price. 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.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
DFM:AMAN Earnings Per Share Growth February 18th 2021

Dive deeper into Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C)'s key metrics by checking this interactive graph of Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C)'s earnings, revenue and cash flow.

A Different Perspective

It's good to see that Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C) has rewarded shareholders with a total shareholder return of 152% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 13% 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 Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C) better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Dubai Islamic Insurance & Reinsurance (Aman) (P.J.S.C) .

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 AE exchanges.

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