Shareholders Of Willy-Food Investments (TLV:WLFD) Must Be Happy With Their 268% Total Return

It hasn't been the best quarter for Willy-Food Investments Ltd (TLV:WLFD) shareholders, since the share price has fallen 10% in that time. But that doesn't change the fact that the returns over the last five years have been very strong. It's fair to say most would be happy with 239% the gain in that time. To some, the recent pullback wouldn't be surprising after such a fast rise. Ultimately business performance will determine whether the stock price continues the positive long term trend.

Check out our latest analysis for Willy-Food Investments

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...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, Willy-Food Investments achieved compound earnings per share (EPS) growth of 61% per year. This EPS growth is higher than the 28% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days.

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

It might be well worthwhile taking a look at our free report on Willy-Food Investments' earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Willy-Food Investments' total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Willy-Food Investments shareholders, and that cash payout contributed to why its TSR of 268%, over the last 5 years, is better than the share price return.

A Different Perspective

It's nice to see that Willy-Food Investments shareholders have received a total shareholder return of 17% over the last year. Having said that, the five-year TSR of 30% a year, is even better. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. Is Willy-Food Investments cheap compared to other companies? These 3 valuation measures might help you decide.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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