The Kafrit Industries (1993) (TLV:KAFR) Share Price Is Up 34% And Shareholders Are Holding On

Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. To wit, the Kafrit Industries (1993) Ltd (TLV:KAFR) share price is 34% higher than it was a year ago, much better than the market decline of around 0.5% (not including dividends) in the same period. So that should have shareholders smiling. Having said that, the longer term returns aren't so impressive, with stock gaining just 12% in three years.

See our latest analysis for Kafrit Industries (1993)

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. 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.

Kafrit Industries (1993) was able to grow EPS by 80% in the last twelve months. This EPS growth is significantly higher than the 34% increase in the share price. Therefore, it seems the market isn't as excited about Kafrit Industries (1993) as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 9.66.

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

This free interactive report on Kafrit Industries (1993)'s earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Kafrit Industries (1993) the TSR over the last year was 39%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that Kafrit Industries (1993) shareholders have received a total shareholder return of 39% over one year. Of course, that includes the dividend. That's better than the annualised return of 9% 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. It's always interesting to track share price performance over the longer term. But to understand Kafrit Industries (1993) better, we need to consider many other factors. For instance, we've identified 3 warning signs for Kafrit Industries (1993) (1 is a bit unpleasant) that you should be aware of.

We will like Kafrit Industries (1993) 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 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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