Did You Participate In Any Of Poalim I.B.I.-Managing & Underwriting's (TLV:PIU) Fantastic 185% Return ?

Passive investing in index funds can generate returns that roughly match the overall market. But the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, the Poalim I.B.I.-Managing & Underwriting Ltd (TLV:PIU) share price is up 65% in the last five years, slightly above the market return. We're also happy to report the stock is up a healthy 63% in the last year.

See our latest analysis for Poalim I.B.I.-Managing & Underwriting

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

Over half a decade, Poalim I.B.I.-Managing & Underwriting managed to grow its earnings per share at 0.1% a year. This EPS growth is lower than the 11% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

It might be well worthwhile taking a look at our free report on Poalim I.B.I.-Managing & Underwriting's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Poalim I.B.I.-Managing & Underwriting's 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 Poalim I.B.I.-Managing & Underwriting's TSR of 185% over the last 5 years is better than the share price return.

A Different Perspective

It's good to see that Poalim I.B.I.-Managing & Underwriting has rewarded shareholders with a total shareholder return of 80% in the last twelve months. That gain is better than the annual TSR over five years, which is 23%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Poalim I.B.I.-Managing & Underwriting better, we need to consider many other factors. Even so, be aware that Poalim I.B.I.-Managing & Underwriting is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

Of course Poalim I.B.I.-Managing & Underwriting may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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