The Qatar Oman Investment Company Q.S.C (DSM:QOIS) Share Price Has Gained 35% And Shareholders Are Hoping For More

The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Qatar Oman Investment Company Q.S.C. (DSM:QOIS) share price is up 35% in the last year, clearly besting the market return of around 3.2% (not including dividends). So that should have shareholders smiling. Having said that, the longer term returns aren't so impressive, with stock gaining just 6.6% in three years.

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

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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. This EPS growth is significantly higher than the 35% increase in the share price. So it seems like the market has cooled on Qatar Oman Investment Company Q.S.C, despite the growth. Interesting.

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

Dive deeper into Qatar Oman Investment Company Q.S.C's key metrics by checking this interactive graph of Qatar Oman Investment Company Q.S.C's earnings, revenue and cash flow.

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. As it happens, Qatar Oman Investment Company Q.S.C's TSR for the last year was 42%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that Qatar Oman Investment Company Q.S.C shareholders have received a total shareholder return of 42% over one year. Of course, that includes the dividend. There's no doubt those recent returns are much better than the TSR loss of 1.4% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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. Case in point: We've spotted 3 warning signs for Qatar Oman Investment Company Q.S.C you should be aware of, and 1 of them shouldn't be ignored.

But note: Qatar Oman Investment Company Q.S.C 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 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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