Al Hammadi Company For Development and Investment (TADAWUL:4007) Share Prices Have Dropped 30% In The Last Five Years

Ideally, your overall portfolio should beat the market average. But every investor is virtually certain to have both over-performing and under-performing stocks. At this point some shareholders may be questioning their investment in Al Hammadi Company For Development and Investment (TADAWUL:4007), since the last five years saw the share price fall 30%. The silver lining is that the stock is up 1.2% in about a week.

Check out our latest analysis for Al Hammadi Company For Development and Investment

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

Looking back five years, both Al Hammadi Company For Development and Investment's share price and EPS declined; the latter at a rate of 1.6% per year. This reduction in EPS is less than the 7% annual reduction in the share price. This implies that the market was previously too optimistic about the stock.

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

We know that Al Hammadi Company For Development and Investment has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Al Hammadi Company For Development and Investment's total shareholder return (TSR) and its share price change, which we've covered above. 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. Dividends have been really beneficial for Al Hammadi Company For Development and Investment shareholders, and that cash payout explains why its total shareholder loss of 27%, over the last 5 years, isn't as bad as the share price return.

A Different Perspective

We're pleased to report that Al Hammadi Company For Development and Investment shareholders have received a total shareholder return of 19% over one year. Notably the five-year annualised TSR loss of 5% 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. Is Al Hammadi Company For Development and Investment cheap compared to other companies? These 3 valuation measures might help you decide.

Of course Al Hammadi Company For Development and Investment may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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