Stock Analysis

Introducing Malta International Airport (MTSE:MIA), A Stock That Climbed 34% In The Last Five Years

MTSE:MIA
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Stock pickers are generally looking for stocks that will outperform the broader market. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, long term Malta International Airport p.l.c. (MTSE:MIA) shareholders have enjoyed a 34% share price rise over the last half decade, well in excess of the market decline of around 18% (not including dividends).

See our latest analysis for Malta International Airport

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last half decade, Malta International Airport became profitable. That's generally thought to be a genuine positive, so we would expect to see an increasing share price.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
MTSE:MIA Earnings Per Share Growth February 26th 2021

Dive deeper into Malta International Airport's key metrics by checking this interactive graph of Malta International Airport's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Malta International Airport's share price action, but we should also mention its 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. Its history of dividend payouts mean that Malta International Airport's TSR of 49% over the last 5 years is better than the share price return.

A Different Perspective

Although it hurts that Malta International Airport returned a loss of 9.7% in the last twelve months, the broader market was actually worse, returning a loss of 14%. Longer term investors wouldn't be so upset, since they would have made 8%, each year, over five years. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Malta International Airport 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 MT exchanges.

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Valuation is complex, but we're helping make it simple.

Find out whether Malta International Airport is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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