Wilh. Wilhelmsen Holding (OB:WWI) jumps 4.8% this week, though earnings growth is still tracking behind five-year shareholder returns

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. For example, the Wilh. Wilhelmsen Holding ASA (OB:WWI) share price has soared 149% in the last half decade. Most would be very happy with that. Meanwhile the share price is 4.8% higher than it was a week ago.

Since it's been a strong week for Wilh. Wilhelmsen Holding shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for Wilh. Wilhelmsen Holding

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

Over half a decade, Wilh. Wilhelmsen Holding managed to grow its earnings per share at 49% a year. The EPS growth is more impressive than the yearly share price gain of 20% over the same period. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 3.37.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

It is of course excellent to see how Wilh. Wilhelmsen Holding has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Wilh. Wilhelmsen Holding's financial health with this free report on its balance sheet.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. We note that for Wilh. Wilhelmsen Holding the TSR over the last 5 years was 195%, 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

We're pleased to report that Wilh. Wilhelmsen Holding shareholders have received a total shareholder return of 22% over one year. And that does include the dividend. Having said that, the five-year TSR of 24% a year, is even better. 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. Even so, be aware that Wilh. Wilhelmsen Holding is showing 1 warning sign in our investment analysis , you should know about...

But note: Wilh. Wilhelmsen Holding may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.