If You Had Bought Takaful Emarat - Insurance (PSC) (DFM:TAKAFUL-EM) Shares A Year Ago You'd Have Earned 30% Returns

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. For example, the Takaful Emarat - Insurance (PSC) (DFM:TAKAFUL-EM) share price is up 30% in the last year, clearly besting the market return of around 3.7% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! In contrast, the longer term returns are negative, since the share price is 25% lower than it was three years ago.

See our latest analysis for Takaful Emarat - Insurance (PSC)

Takaful Emarat - Insurance (PSC) isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Takaful Emarat - Insurance (PSC) saw its revenue grow by 4.9%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 30%. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Takaful Emarat - Insurance (PSC)'s financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Takaful Emarat - Insurance (PSC) shareholders have received a total shareholder return of 30% over one year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 2%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. To that end, you should learn about the 3 warning signs we've spotted with Takaful Emarat - Insurance (PSC) (including 1 which doesn't sit too well with us) .

But note: Takaful Emarat - Insurance (PSC) may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AE exchanges.

If you decide to trade Takaful Emarat - Insurance (PSC), use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.