Investors Who Bought Saudi Re for Cooperative Reinsurance (TADAWUL:8200) Shares Five Years Ago Are Now Up 96%

When we invest, we're generally looking for stocks that outperform the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. To wit, the Saudi Re for Cooperative Reinsurance share price has climbed 96% in five years, easily topping the market return of 48% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 42% in the last year.

View our latest analysis for Saudi Re for Cooperative Reinsurance

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...' 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, Saudi Re for Cooperative Reinsurance moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.

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

It might be well worthwhile taking a look at our free report on Saudi Re for Cooperative Reinsurance's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Saudi Re for Cooperative Reinsurance shareholders have received a total shareholder return of 42% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 14% 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 Saudi Re for Cooperative Reinsurance better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Saudi Re for Cooperative Reinsurance (of which 1 makes us a bit uncomfortable!) you should know about.

But note: Saudi Re for Cooperative Reinsurance 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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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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