Zvi Sarfati & Sons Investments & Constructions (TLV:SRFT) Has Gifted Shareholders With A Fantastic 161% Total Return On Their Investment

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. For example, the Zvi Sarfati & Sons Investments & Constructions Ltd. (TLV:SRFT) share price has soared 136% in the last half decade. Most would be very happy with that. Better yet, the share price has risen 8.5% in the last week.

View our latest analysis for Zvi Sarfati & Sons Investments & Constructions

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.

Zvi Sarfati & Sons Investments & Constructions' earnings per share are down 19% per year, despite strong share price performance over five years.

Essentially, it doesn't seem likely that investors are focused on EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

It is not great to see that revenue has dropped by 3.1% per year over five years. So it seems one might have to take closer look at earnings and revenue trends to see how they might influence the share price.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

This free interactive report on Zvi Sarfati & Sons Investments & Constructions' balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Zvi Sarfati & Sons Investments & Constructions' total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Zvi Sarfati & Sons Investments & Constructions' TSR of 161% over the last 5 years is better than the share price return.

A Different Perspective

It's good to see that Zvi Sarfati & Sons Investments & Constructions has rewarded shareholders with a total shareholder return of 91% in the last twelve months. That's better than the annualised return of 21% 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 Zvi Sarfati & Sons Investments & Constructions better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Zvi Sarfati & Sons Investments & Constructions (of which 1 is potentially serious!) you should know about.

We will like Zvi Sarfati & Sons Investments & Constructions 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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