If You Had Bought Meitav DASH Investments (TLV:MTDS) Stock A Year Ago, You Could Pocket A 122% Gain Today

By
Simply Wall St
Published
June 01, 2021
TASE:MTDS
Source: Shutterstock

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Meitav DASH Investments Ltd (TLV:MTDS) share price had more than doubled in just one year - up 122%. But it's down 8.2% in the last week. But this could be related to the soft market, with stocks selling off around 0.9% in the last week. And shareholders have also done well over the long term, with an increase of 69% in the last three years.

See our latest analysis for Meitav DASH Investments

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. 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.

Meitav DASH Investments was able to grow EPS by 113% in the last twelve months. This EPS growth is reasonably close to the 122% increase in the share price. This makes us think the market hasn't really changed its sentiment around the company, in the last year. It looks like the share price is responding to the EPS.

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

earnings-per-share-growth
TASE:MTDS Earnings Per Share Growth June 2nd 2021

This free interactive report on Meitav DASH Investments' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

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, Meitav DASH Investments' TSR for the last year was 133%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Meitav DASH Investments has rewarded shareholders with a total shareholder return of 133% in the last twelve months. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 16% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with Meitav DASH Investments (including 1 which can't be ignored) .

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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