One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, the Glenveagh Properties PLC (ISE:GVR) share price is up 47% in the last three years, clearly besting the market return of around 34% (not including dividends).
In light of the stock dropping 4.9% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive three-year return.
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 three years of share price growth, Glenveagh Properties moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that Glenveagh Properties has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Glenveagh Properties will grow revenue in the future.
A Different Perspective
We're pleased to report that Glenveagh Properties rewarded shareholders with a total shareholder return of 41% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 14%. Given the track record of solid returns over varying time frames, it might be worth putting Glenveagh Properties on your watchlist. Before spending more time on Glenveagh Properties it might be wise to click here to see if insiders have been buying or selling shares.
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 IE 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.