Qatar Oman Investment Company Q.S.C (DSM:QOIS) Shareholders Have Enjoyed An Impressive 105% Share Price Gain

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Qatar Oman Investment Company Q.S.C. (DSM:QOIS) share price has soared 105% return in just a single year. In the last week shares have slid back 2.7%. The longer term returns have not been as good, with the stock price only 15% higher than it was three years ago.

View our latest analysis for Qatar Oman Investment Company Q.S.C

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Qatar Oman Investment Company Q.S.C was able to grow EPS by 351% in the last twelve months. It's fair to say that the share price gain of 105% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Qatar Oman Investment Company Q.S.C as it was before. This could be an opportunity.

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

This free interactive report on Qatar Oman Investment Company Q.S.C's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Qatar Oman Investment Company Q.S.C the TSR over the last year was 115%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

We're pleased to report that Qatar Oman Investment Company Q.S.C shareholders have received a total shareholder return of 115% over one year. That's including the dividend. Notably the five-year annualised TSR loss of 3% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. To that end, you should learn about the 4 warning signs we've spotted with Qatar Oman Investment Company Q.S.C (including 1 which is concerning) .

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 QA 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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