Earnings growth outpaced the 24% return delivered to Kamada (TLV:KMDA) shareholders over the last year

A diverse portfolio of stocks will always have winners and losers. Of course, in an ideal world, all your stocks would beat the market. Kamada Ltd. (TLV:KMDA) has done well over the last year, with the stock price up 24% beating the market return of 23% (not including dividends). Longer term, the stock is up 23% in three years.

The past week has proven to be lucrative for Kamada investors, so let's see if fundamentals drove the company's one-year performance.

View our latest analysis for Kamada

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

Kamada was able to grow EPS by 266% in the last twelve months. This EPS growth is significantly higher than the 24% increase in the share price. So it seems like the market has cooled on Kamada, despite the growth. Interesting.

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

We know that Kamada has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Kamada will grow revenue in the future.

A Different Perspective

Kamada provided a TSR of 24% over the last twelve months. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 4% per year over five year. It is possible that returns will improve along with the business fundamentals. Before forming an opinion on Kamada you might want to consider these 3 valuation metrics.

We will like Kamada better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) 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.

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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.