Stock Analysis

Navitas Petroleum Limited Partnership (TLV:NVPT) shareholder returns have been strong, earning 193% in 5 years

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TASE:NVPT
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When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term Navitas Petroleum, Limited Partnership (TLV:NVPT) shareholders would be well aware of this, since the stock is up 193% in five years. It's also good to see the share price up 30% over the last quarter.

The past week has proven to be lucrative for Navitas Petroleum Limited Partnership investors, so let's see if fundamentals drove the company's five-year performance.

Check out our latest analysis for Navitas Petroleum Limited Partnership

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 the five years of share price growth, Navitas Petroleum Limited Partnership moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
TASE:NVPT Earnings Per Share Growth February 8th 2024

Dive deeper into Navitas Petroleum Limited Partnership's key metrics by checking this interactive graph of Navitas Petroleum Limited Partnership's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Navitas Petroleum Limited Partnership has rewarded shareholders with a total shareholder return of 114% in the last twelve months. That's better than the annualised return of 24% over half a decade, implying that the company is doing better recently. 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 be aware of the 2 warning signs we've spotted with Navitas Petroleum Limited Partnership .

We will like Navitas Petroleum Limited Partnership 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 Israeli exchanges.

Valuation is complex, but we're helping make it simple.

Find out whether Navitas Petroleum Limited Partnership is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.