Shareholders Are Thrilled That The Mordechai Aviv Taasiot Beniyah (1973) (TLV:AVIV) Share Price Increased 105%

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 a lighter note, a good company can see its share price rise well over 100%. For example, the Mordechai Aviv Taasiot Beniyah (1973) Ltd. (TLV:AVIV) share price has soared 105% in the last half decade. Most would be very happy with that. It's even up 5.4% in the last week. But this could be related to the buoyant market which is up about 2.2% in a week.

View our latest analysis for Mordechai Aviv Taasiot Beniyah (1973)

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During five years of share price growth, Mordechai Aviv Taasiot Beniyah (1973) achieved compound earnings per share (EPS) growth of 2.6% per year. This EPS growth is lower than the 15% 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 below how EPS has changed over time (discover the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Mordechai Aviv Taasiot Beniyah (1973)'s earnings, revenue and cash flow.

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 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Mordechai Aviv Taasiot Beniyah (1973)'s TSR for the last 5 years was 123%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Mordechai Aviv Taasiot Beniyah (1973) shareholders have received returns of 56% over twelve months (even including dividends), which isn't far from the general market return. That gain looks pretty satisfying, and it is even better than the five-year TSR of 17% per year. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. It's always interesting to track share price performance over the longer term. But to understand Mordechai Aviv Taasiot Beniyah (1973) better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with Mordechai Aviv Taasiot Beniyah (1973) (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.

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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