Stock Analysis

Arkan Building Materials Company (ARKAN) PJSC's (ADX:EMSTEEL) three-year earnings growth trails the 53% YoY shareholder returns

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ADX:EMSTEEL
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While Arkan Building Materials Company (ARKAN) PJSC (ADX:EMSTEEL) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 16% in the last quarter. But that doesn't change the fact that the returns over the last three years have been very strong. In three years the stock price has launched 255% higher: a great result. After a run like that some may not be surprised to see prices moderate. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity.

Since it's been a strong week for Arkan Building Materials Company (ARKAN) PJSC shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Arkan Building Materials Company (ARKAN) PJSC

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...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Arkan Building Materials Company (ARKAN) PJSC became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.

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

earnings-per-share-growth
ADX:EMSTEEL Earnings Per Share Growth March 30th 2023

Dive deeper into Arkan Building Materials Company (ARKAN) PJSC's key metrics by checking this interactive graph of Arkan Building Materials Company (ARKAN) PJSC's earnings, revenue and cash flow.

A Different Perspective

Arkan Building Materials Company (ARKAN) PJSC shareholders are up 7.3% for the year. But that return falls short of the market. On the bright side, the longer term returns (running at about 17% a year, over half a decade) look better. Maybe the share price is just taking a breather while the business executes on its growth strategy. Before deciding if you like the current share price, check how Arkan Building Materials Company (ARKAN) PJSC scores on these 3 valuation metrics.

We will like Arkan Building Materials Company (ARKAN) PJSC 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 Emirian exchanges.

Valuation is complex, but we're helping make it simple.

Find out whether Arkan Building Materials Company (ARKAN) PJSC is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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