The Tokmanni Group Oyj (HEL:TOKMAN) Share Price Is Up 69% And Shareholders Are Holding On
If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. For example, the Tokmanni Group Oyj (HEL:TOKMAN) share price is up 69% in the last year, clearly besting the market return of around 5.3% (not including dividends). So that should have shareholders smiling. And shareholders have also done well over the long term, with an increase of 51% in the last three years.
Check out our latest analysis for Tokmanni Group Oyj
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.
Over the last twelve months, Tokmanni Group Oyj actually shrank its EPS by 13%.
Given the share price gain, we doubt the market is measuring progress with EPS. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.
However the year on year revenue growth of 9.1% would help. We do see some companies suppress earnings in order to accelerate revenue growth.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Tokmanni Group Oyj stock, you should check out this FREE detailed report on its balance sheet.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Tokmanni Group Oyj's TSR for the last year was 79%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
We're pleased to report that Tokmanni Group Oyj rewarded shareholders with a total shareholder return of 79% over the last year. And yes, that does include the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 21%. Given the track record of solid returns over varying time frames, it might be worth putting Tokmanni Group Oyj on your watchlist. Keeping this in mind, a solid next step might be to take a look at Tokmanni Group Oyj's dividend track record. This free interactive graph is a great place to start.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on FI exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.