Hrvatski Telekom d.d (ZGSE:HT) Has Compensated Shareholders With A Respectable 62% Return On Their Investment

When we invest, we're generally looking for stocks that outperform the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, long term Hrvatski Telekom d.d. (ZGSE:HT) shareholders have enjoyed a 29% share price rise over the last half decade, well in excess of the market return of around 7.5% (not including dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 8.4% , including dividends .

Check out our latest analysis for Hrvatski Telekom d.d

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

During the five years of share price growth, Hrvatski Telekom d.d moved from a loss to profitability. That's generally thought to be a genuine positive, so we would expect to see an increasing share price.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Hrvatski Telekom d.d's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. As it happens, Hrvatski Telekom d.d's TSR for the last 5 years was 62%, 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 Hrvatski Telekom d.d shareholders have received a total shareholder return of 8.4% over one year. That's including the dividend. However, that falls short of the 10% TSR per annum it has made for shareholders, each year, over five years. It's always interesting to track share price performance over the longer term. But to understand Hrvatski Telekom d.d better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Hrvatski Telekom d.d you should be aware of, and 1 of them doesn't sit too well with us.

We will like Hrvatski Telekom d.d 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 HR 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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