Did You Participate In Any Of Allterco AD's (BUL:A4L) Incredible 318% Return?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Allterco AD (BUL:A4L) share price is 241% higher than it was three years ago. How nice for those who held the stock! On top of that, the share price is up 76% in about a quarter.

See our latest analysis for Allterco AD

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Allterco AD was able to grow its EPS at 98% per year over three years, sending the share price higher. The average annual share price increase of 50% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time.

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

Dive deeper into Allterco AD's key metrics by checking this interactive graph of Allterco AD's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Allterco AD, it has a TSR of 318% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Pleasingly, Allterco AD's total shareholder return last year was 127%. That includes the value of the dividend. That's better than the annualized TSR of 61% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Allterco AD on your watchlist. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 5 warning signs we've spotted with Allterco AD (including 1 which shouldn't be ignored) .

We will like Allterco AD 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 BG 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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