Stock Analysis

Investors Who Bought Al Rajhi Company for Cooperative Insurance (TADAWUL:8230) Shares Five Years Ago Are Now Up 389%

SASE:8230
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For many, the main point of investing in the stock market is to achieve spectacular returns. And we've seen some truly amazing gains over the years. For example, the Al Rajhi Company for Cooperative Insurance (TADAWUL:8230) share price is up a whopping 389% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. And in the last month, the share price has gained 7.4%.

See our latest analysis for Al Rajhi Company for Cooperative Insurance

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 five years of share price growth, Al Rajhi Company for Cooperative Insurance achieved compound earnings per share (EPS) growth of 36% per year. That makes the EPS growth particularly close to the yearly share price growth of 37%. This indicates that investor sentiment towards the company has not changed a great deal. Indeed, it would appear the share price is reacting to the EPS.

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

earnings-per-share-growth
SASE:8230 Earnings Per Share Growth January 25th 2021

We know that Al Rajhi Company for Cooperative Insurance has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

A Different Perspective

We're pleased to report that Al Rajhi Company for Cooperative Insurance shareholders have received a total shareholder return of 36% over one year. Having said that, the five-year TSR of 37% a year, is even better. Is Al Rajhi Company for Cooperative Insurance cheap compared to other companies? These 3 valuation measures might help you decide.

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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Valuation is complex, but we're helping make it simple.

Find out whether Al Rajhi Company for Cooperative Insurance is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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