Is Tiv Taam Holdings 1's (TLV:TTAM) Share Price Gain Of 162% Well Earned?

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Tiv Taam Holdings 1 Ltd. (TLV:TTAM) share price had more than doubled in just one year - up 162%. It's down 3.8% in the last seven days. Also impressive, the stock is up 161% over three years, making long term shareholders happy, too.

Check out our latest analysis for Tiv Taam Holdings 1

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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year Tiv Taam Holdings 1 grew its earnings per share (EPS) by 324%. It's fair to say that the share price gain of 162% did not keep pace with the EPS growth. So it seems like the market has cooled on Tiv Taam Holdings 1, despite the growth. Interesting.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Dive deeper into Tiv Taam Holdings 1's key metrics by checking this interactive graph of Tiv Taam Holdings 1's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Tiv Taam Holdings 1's TSR for the last year was 172%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that Tiv Taam Holdings 1 has rewarded shareholders with a total shareholder return of 172% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 20%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Tiv Taam Holdings 1 better, we need to consider many other factors. For example, we've discovered 2 warning signs for Tiv Taam Holdings 1 that you should be aware of before investing here.

We will like Tiv Taam Holdings 1 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 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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