Stock Analysis

If You Had Bought N.R. Spuntech Industries (TLV:SPNTC) Shares A Year Ago You'd Have Earned 101% Returns

TASE:SPNTC
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While N.R. Spuntech Industries Ltd. (TLV:SPNTC) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 11% in the last quarter. But that doesn't change the fact that the returns over the last year have been very strong. We're very pleased to report the share price shot up 101% in that time. So it is important to view the recent reduction in price through that lense. More important, going forward, is how the business itself is going.

View our latest analysis for N.R. Spuntech Industries

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...' 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.

During the last year N.R. Spuntech Industries grew its earnings per share (EPS) by 87%. We note that the earnings per share growth isn't far from the share price growth (of 101%). That suggests that the market sentiment around the company hasn't changed much over that time. 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:SPNTC Earnings Per Share Growth December 1st 2020

This free interactive report on N.R. Spuntech Industries' 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for N.R. Spuntech Industries the TSR over the last year was 119%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

We're pleased to report that N.R. Spuntech Industries shareholders have received a total shareholder return of 119% over one year. And that does include the dividend. That certainly beats the loss of about 6% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand N.R. Spuntech Industries better, we need to consider many other factors. Even so, be aware that N.R. Spuntech Industries is showing 3 warning signs in our investment analysis , and 1 of those is significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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Valuation is complex, but we're here to simplify it.

Discover if N.R. Spuntech Industries might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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