The Matrimony.com (NSE:MATRIMONY) Share Price Is Up 250% And Shareholders Are Boasting About It

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Matrimony.com Limited (NSE:MATRIMONY) share price had more than doubled in just one year - up 250%. Having said that, the longer term returns aren't so impressive, with stock gaining just 26% in three years.

See our latest analysis for Matrimony.com

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 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.

Matrimony.com was able to grow EPS by 22% in the last twelve months. The share price gain of 250% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago. The fairly generous P/E ratio of 58.54 also points to this optimism.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that Matrimony.com has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

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 Matrimony.com the TSR over the last year was 252%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

It's nice to see that Matrimony.com shareholders have gained 252% (in total) over the last year. That's including the dividend. That's better than the annualized TSR of 9% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Matrimony.com on your watchlist. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Matrimony.com that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN 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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