Did You Miss Walaa Cooperative Insurance's (TADAWUL:8060) Impressive 180% Share Price Gain?

When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. Long term Walaa Cooperative Insurance Company (TADAWUL:8060) shareholders would be well aware of this, since the stock is up 180% in five years. Better yet, the share price has risen 8.2% in the last week.

View our latest analysis for Walaa 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.

During the five years of share price growth, Walaa Cooperative Insurance moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that Walaa Cooperative Insurance 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)?

We'd be remiss not to mention the difference between Walaa Cooperative Insurance's total shareholder return (TSR) and its share price return. 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. Its history of dividend payouts mean that Walaa Cooperative Insurance's TSR of 193% over the last 5 years is better than the share price return.

A Different Perspective

It's good to see that Walaa Cooperative Insurance has rewarded shareholders with a total shareholder return of 36% in the last twelve months. That's better than the annualised return of 24% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Walaa Cooperative Insurance better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Walaa Cooperative Insurance you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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