Saudi Printing and Packaging (TADAWUL:4270) Shareholders Booked A 79% Gain In The Last Year

Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. To wit, the Saudi Printing and Packaging Co. (TADAWUL:4270) share price is 79% higher than it was a year ago, much better than the market return of around 2.7% (not including dividends) in the same period. That's a solid performance by our standards! However, the longer term returns haven't been so impressive, with the stock up just 18% in the last three years.

See our latest analysis for Saudi Printing and Packaging

Because Saudi Printing and Packaging made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Saudi Printing and Packaging actually shrunk its revenue over the last year, with a reduction of 15%. The stock is up 79% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Saudi Printing and Packaging stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Saudi Printing and Packaging shareholders have received a total shareholder return of 79% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 8% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Saudi Printing and Packaging better, we need to consider many other factors. Take risks, for example - Saudi Printing and Packaging has 1 warning sign we think you should be aware of.

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 SA 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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