One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. Just take a look at Auto Partner SA (WSE:APR), which is up 78%, over three years, soundly beating the market decline of 9.2% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 58% in the last year.
Check out our latest analysis for Auto Partner
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 three years of share price growth, Auto Partner achieved compound earnings per share growth of 33% per year. This EPS growth is higher than the 21% average annual increase in the share price. So one could reasonably conclude that the market has cooled on the stock. This cautious sentiment is reflected in its (fairly low) P/E ratio of 11.84.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that Auto Partner has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Auto Partner's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We're pleased to report that Auto Partner rewarded shareholders with a total shareholder return of 58% over the last year. That gain actually surpasses the 21% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. Before forming an opinion on Auto Partner you might want to consider these 3 valuation metrics.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on PL 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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About WSE:APR
Auto Partner
Sells spare parts for cars, light commercial vehicles, and motorcycles in Poland and internationally.
Flawless balance sheet with reasonable growth potential.
