Did You Participate In Any Of Israel Canada (T.R)'s (TLV:ISCN) Incredible 524% Return?

Buying shares in the best businesses can build meaningful wealth for you and your family. While not every stock performs well, when investors win, they can win big. Don't believe it? Then look at the Israel Canada (T.R) Ltd (TLV:ISCN) share price. It's 419% higher than it was five years ago. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 77% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

View our latest analysis for Israel Canada (T.R)

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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, Israel Canada (T.R) achieved compound earnings per share (EPS) growth of 17% per year. This EPS growth is slower than the share price growth of 39% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.

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

Dive deeper into Israel Canada (T.R)'s key metrics by checking this interactive graph of Israel Canada (T.R)'s earnings, revenue and cash flow.

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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Israel Canada (T.R)'s TSR for the last 5 years was 524%, 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

We're pleased to report that Israel Canada (T.R) shareholders have received a total shareholder return of 20% over one year. And that does include the dividend. Having said that, the five-year TSR of 44% a year, is even better. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand Israel Canada (T.R) better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Israel Canada (T.R) (of which 1 makes us a bit uncomfortable!) you should know about.

We will like Israel Canada (T.R) 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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