Emaar Development PJSC's (DFM:EMAARDEV) investors will be pleased with their 19% return over the last year

It hasn't been the best quarter for Emaar Development PJSC (DFM:EMAARDEV) shareholders, since the share price has fallen 15% in that time. Taking a longer term view we see the stock is up over one year. However, its return of 19% does fall short of the market return of, 31%.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

See our latest analysis for Emaar Development PJSC

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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year Emaar Development PJSC grew its earnings per share (EPS) by 93%. It's fair to say that the share price gain of 19% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Emaar Development PJSC as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 4.94.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

We know that Emaar Development PJSC has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

A Different Perspective

Emaar Development PJSC produced a TSR of 19% over the last year. Unfortunately this falls short of the market return of around 31%. On the bright side, that's certainly better than the yearly loss of about 3.1% endured over the last three years, implying that the company is doing better recently. It could well be that the business is stabilizing. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

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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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.