If You Had Bought SABB Takaful (TADAWUL:8080) Stock A Year Ago, You Could Pocket A 85% Gain Today

By
Simply Wall St
Published
May 19, 2021
SASE:8080
Source: Shutterstock

The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the SABB Takaful Company (TADAWUL:8080) share price is 85% higher than it was a year ago, much better than the market return of around 16% (not including dividends) in the same period. So that should have shareholders smiling. Also impressive, the stock is up 65% over three years, making long term shareholders happy, too.

Check out our latest analysis for SABB Takaful

Because SABB Takaful 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year SABB Takaful saw its revenue grow by 9.4%. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 85% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. It could be worth keeping an eye on this one, especially if growth accelerates.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
SASE:8080 Earnings and Revenue Growth May 20th 2021

This free interactive report on SABB Takaful's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that SABB Takaful shareholders have received a total shareholder return of 85% over the last year. That's better than the annualised return of 6% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for SABB Takaful you should be aware of.

But note: SABB Takaful may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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