Shareholders Of F.I.B.I. Holdings (TLV:FIBIH) Must Be Happy With Their 106% Total Return

When we invest, we're generally looking for stocks that outperform the market average. And in our experience, buying the right stocks can give your wealth a significant boost. For example, the F.I.B.I. Holdings Ltd (TLV:FIBIH) share price is up 64% in the last 5 years, clearly besting the market return of around 31% (ignoring dividends).

See our latest analysis for F.I.B.I. Holdings

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...' 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 half a decade, F.I.B.I. Holdings managed to grow its earnings per share at 14% a year. The EPS growth is more impressive than the yearly share price gain of 10% over the same period. So one could conclude that the broader market has become more cautious towards the stock. This cautious sentiment is reflected in its (fairly low) P/E ratio of 8.48.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into F.I.B.I. Holdings' key metrics by checking this interactive graph of F.I.B.I. Holdings's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered F.I.B.I. Holdings' share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that F.I.B.I. Holdings' TSR of 106% over the last 5 years is better than the share price return.

A Different Perspective

We regret to report that F.I.B.I. Holdings shareholders are down 22% for the year. Unfortunately, that's worse than the broader market decline of 7.0%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 16%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Before forming an opinion on F.I.B.I. Holdings you might want to consider these 3 valuation metrics.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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