Did You Miss Freund's (TYO:6312) 43% Share Price Gain?

Freund Corporation (TYO:6312) shareholders might be concerned after seeing the share price drop 10% in the last month. But that fact in itself shouldn't obscure what are quite decent returns over the last year. After all, the stock has performed better than the market's return of (39%) over the last year, and is up 43%.

See our latest analysis for Freund

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Freund was able to grow EPS by 74% in the last twelve months. It's fair to say that the share price gain of 43% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Freund as it was before. This could be an opportunity.

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

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

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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Freund, it has a TSR of 46% for the last year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that Freund shareholders have received a total shareholder return of 46% over one year. Of course, that includes the dividend. That certainly beats the loss of about 4% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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. Take risks, for example - Freund has 1 warning sign we think you should be aware of.

We will like Freund 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 JP 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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