Stock Analysis

Shareholders Of Hydratec Industries (AMS:HYDRA) Must Be Happy With Their 124% Total Return

  •  Updated
ENXTAM:HYDRA
Source: Shutterstock

When we invest, we're generally looking for stocks that outperform the market average. Buying under-rated businesses is one path to excess returns. For example, long term Hydratec Industries NV (AMS:HYDRA) shareholders have enjoyed a 95% share price rise over the last half decade, well in excess of the market return of around 38% (not including dividends).

See our latest analysis for Hydratec Industries

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 five years of share price growth, Hydratec Industries achieved compound earnings per share (EPS) growth of 32% per year. This EPS growth is higher than the 14% average annual increase in the share price. Therefore, it seems the market has become relatively pessimistic about the company.

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

earnings-per-share-growth
ENXTAM:HYDRA Earnings Per Share Growth January 18th 2021

It might be well worthwhile taking a look at our free report on Hydratec Industries' earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Hydratec Industries' 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 Hydratec Industries' TSR of 124% over the last 5 years is better than the share price return.

A Different Perspective

Investors in Hydratec Industries had a tough year, with a total loss of 8.1%, against a market gain of about 4.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 17%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Hydratec Industries better, we need to consider many other factors. For example, we've discovered 3 warning signs for Hydratec Industries that you should be aware of before investing here.

We will like Hydratec Industries 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 NL exchanges.

When trading Hydratec Industries or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


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

Find out whether Hydratec Industries 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.

View the Free Analysis