Update: Credit Intelligence (ASX:CI1) Stock Gained 57% In The Last Year

The Credit Intelligence Limited (ASX:CI1) share price has had a bad week, falling 15%. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 57% in that time.

Check out our latest analysis for Credit Intelligence

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...' 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.

Credit Intelligence was able to grow EPS by 39% in the last twelve months. This EPS growth is significantly lower than the 57% increase in the share price. This indicates that the market is now more optimistic about the stock.

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

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. This free interactive report on Credit Intelligence's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Credit Intelligence, it has a TSR of 62% for the last year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Credit Intelligence boasts a total shareholder return of 62% for the last year (that includes the dividends) . A substantial portion of that gain has come in the last three months, with the stock up 76% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Credit Intelligence better, we need to consider many other factors. Take risks, for example - Credit Intelligence has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Credit Intelligence is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

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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.
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