If You Had Bought Chubb Arabia Cooperative Insurance (TADAWUL:8240) Stock Five Years Ago, You Could Pocket A 163% Gain Today

By
Simply Wall St
Published
July 01, 2021
SASE:8240
Source: Shutterstock

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, you can make far more than 100% on a really good stock. One great example is Chubb Arabia Cooperative Insurance Company (TADAWUL:8240) which saw its share price drive 163% higher over five years. In more good news, the share price has risen 12% in thirty days.

See our latest analysis for Chubb Arabia 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...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, Chubb Arabia Cooperative Insurance achieved compound earnings per share (EPS) growth of 11% per year. This EPS growth is slower than the share price growth of 21% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
SASE:8240 Earnings Per Share Growth July 1st 2021

It might be well worthwhile taking a look at our free report on Chubb Arabia Cooperative Insurance's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Chubb Arabia Cooperative Insurance shareholders have received a total shareholder return of 111% over the last year. That's better than the annualised return of 21% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Chubb Arabia Cooperative Insurance .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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