Allianz Saudi Fransi Cooperative Insurance (TADAWUL:8040) Has Compensated Shareholders With A 34% Return On Their Investment

Allianz Saudi Fransi Cooperative Insurance Company (TADAWUL:8040) shareholders should be happy to see the share price up 22% in the last quarter. But over the last half decade, the stock has not performed well. In fact, the share price is down 23%, which falls well short of the return you could get by buying an index fund.

Check out our latest analysis for Allianz Saudi Fransi Cooperative Insurance

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

In the last half decade Allianz Saudi Fransi Cooperative Insurance saw its share price fall as its EPS declined below zero. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But we would generally expect a lower price, given the situation.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Allianz Saudi Fransi Cooperative Insurance's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Allianz Saudi Fransi Cooperative Insurance's share price action, but we should also mention its total shareholder return (TSR). 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. Allianz Saudi Fransi Cooperative Insurance hasn't been paying dividends, but its TSR of 34% exceeds its share price return of -23%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

It's nice to see that Allianz Saudi Fransi Cooperative Insurance shareholders have received a total shareholder return of 78% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 6% 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 Allianz Saudi Fransi Cooperative Insurance better, we need to consider many other factors. For instance, we've identified 3 warning signs for Allianz Saudi Fransi Cooperative Insurance (2 don't sit too well with us) that you should be aware of.

Of course Allianz Saudi Fransi Cooperative Insurance 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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