Stock Analysis

What Are The Total Returns Earned By Shareholders Of ADS Maritime Holding (OB:ADS) On Their Investment?

OB:ADS
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It's normal to be annoyed when stock you own has a declining share price. But sometimes a share price fall can have more to do with market conditions than the performance of the specific business. The ADS Maritime Holding Plc (OB:ADS) is down 93% over a year, but the total shareholder return is 62% once you include the dividend. And that total return actually beats the market return of 31%. ADS Maritime Holding may have better days ahead, of course; we've only looked at a one year period. Even worse, it's down 92% in about a month, which isn't fun at all. Importantly, this could be a market reaction to the recently released financial results. You can check out the latest numbers in our company report.

We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

Check out our latest analysis for ADS Maritime Holding

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. 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 year ADS Maritime Holding grew its earnings per share, moving from a loss to a profit.

The result looks like a strong improvement to us, so we're surprised the market has sold down the shares. If the improved profitability is a sign of things to come, then right now may prove the perfect time to pop this stock on your watchlist.

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

earnings-per-share-growth
OB:ADS Earnings Per Share Growth March 8th 2021

We know that ADS Maritime Holding has improved its bottom line lately, but is it going to grow revenue? Check if analysts think ADS Maritime Holding 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. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for ADS Maritime Holding the TSR over the last year was 62%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

ADS Maritime Holding shareholders should be happy with the total gain of 62% over the last twelve months, including dividends. We regret to report that the share price is down 92% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. It's always interesting to track share price performance over the longer term. But to understand ADS Maritime Holding better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 6 warning signs for ADS Maritime Holding (of which 2 are potentially serious!) you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NO 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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