Stock Analysis

Mediterranean and Gulf Cooperative Insurance and Reinsurance's(TADAWUL:8030) Share Price Is Down 60% Over The Past Five Years.

SASE:8030
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We think intelligent long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. For example the The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (TADAWUL:8030) share price dropped 60% over five years. That is extremely sub-optimal, to say the least. It's up 3.2% in the last seven days.

Check out our latest analysis for Mediterranean and Gulf Cooperative Insurance and Reinsurance

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.

Mediterranean and Gulf Cooperative Insurance and Reinsurance became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics might give us a better handle on how its value is changing over time.

It could be that the revenue decline of 15% per year is viewed as evidence that Mediterranean and Gulf Cooperative Insurance and Reinsurance is shrinking. This has probably encouraged some shareholders to sell down the stock.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
SASE:8030 Earnings and Revenue Growth March 11th 2021

If you are thinking of buying or selling Mediterranean and Gulf Cooperative Insurance and Reinsurance stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We've already covered Mediterranean and Gulf Cooperative Insurance and Reinsurance's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Mediterranean and Gulf Cooperative Insurance and Reinsurance's TSR of was a loss of 51% for the 5 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

We're pleased to report that Mediterranean and Gulf Cooperative Insurance and Reinsurance shareholders have received a total shareholder return of 56% over one year. That certainly beats the loss of about 9% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. Before deciding if you like the current share price, check how Mediterranean and Gulf Cooperative Insurance and Reinsurance scores on these 3 valuation metrics.

Of course Mediterranean and Gulf Cooperative Insurance and Reinsurance 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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Valuation is complex, but we're helping make it simple.

Find out whether Mediterranean and Gulf Cooperative Insurance and Reinsurance is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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