The Saudi Arabian Cooperative Insurance (TADAWUL:8100) Share Price Is Up 136% And Shareholders Are Boasting About It

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Saudi Arabian Cooperative Insurance Company (TADAWUL:8100) share price has soared 136% return in just a single year. Also pleasing for shareholders was the 13% gain in the last three months. It is also impressive that the stock is up 35% over three years, adding to the sense that it is a real winner.

See our latest analysis for Saudi Arabian Cooperative Insurance

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...' 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.

During the last year Saudi Arabian Cooperative Insurance grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

Saudi Arabian Cooperative Insurance's revenue actually dropped 16% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.

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

Take a more thorough look at Saudi Arabian Cooperative Insurance's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Saudi Arabian Cooperative Insurance shareholders have received a total shareholder return of 136% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 8% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Take risks, for example - Saudi Arabian Cooperative Insurance has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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