Can You Imagine How Avgol Industries 1953's (TLV:AVGL) Shareholders Feel About The 36% Share Price Increase?

Avgol Industries 1953 Ltd (TLV:AVGL) shareholders might be concerned after seeing the share price drop 14% in the last quarter. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 36%.

See our latest analysis for Avgol Industries 1953

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

During the last year Avgol Industries 1953 grew its earnings per share (EPS) by 166%. It's fair to say that the share price gain of 36% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Avgol Industries 1953 as it was before. This could be an opportunity. This cautious sentiment is reflected in its (fairly low) P/E ratio of 7.71.

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

Dive deeper into Avgol Industries 1953's key metrics by checking this interactive graph of Avgol Industries 1953's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Avgol Industries 1953 shareholders have received a total shareholder return of 36% over the last year. There's no doubt those recent returns are much better than the TSR loss of 0.7% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Avgol Industries 1953 is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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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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