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

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).

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.