Investors in Abu Dhabi Ports Company PJSC (ADX:ADPORTS) have seen returns of 26% over the past year

Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. For example, the Abu Dhabi Ports Company PJSC (ADX:ADPORTS) share price is up 26% in the last 1 year, clearly besting the market return of around 11% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Abu Dhabi Ports Company PJSC hasn't been listed for long, so it's still not clear if it is a long term winner.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

View our latest analysis for Abu Dhabi Ports Company PJSC

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

During the last year Abu Dhabi Ports Company PJSC grew its earnings per share (EPS) by 6.0%. The share price gain of 26% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

Dive deeper into Abu Dhabi Ports Company PJSC's key metrics by checking this interactive graph of Abu Dhabi Ports Company PJSC's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Abu Dhabi Ports Company PJSC shareholders have gained 26% over the last year. That's better than the more recent three month gain of 0.3%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). Before forming an opinion on Abu Dhabi Ports Company PJSC you might want to consider these 3 valuation metrics.

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 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.