The United Wire Factories (TADAWUL:1301) Share Price Has Gained 83% And Shareholders Are Hoping For More

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the United Wire Factories Company (TADAWUL:1301) share price is up 83% in the last year, clearly besting the market return of around 8.9% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! It is also impressive that the stock is up 67% over three years, adding to the sense that it is a real winner.

View our latest analysis for United Wire Factories

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 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).

United Wire Factories boasted truly magnificent EPS growth in the last year. We don't think the exact number is a good guide to the sustainable growth rate, but we do think this sort of increase is impressive. So we'd expect to see the share price higher. We're real advocates of letting inflection points like this guide our research as stock pickers.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

This free interactive report on United Wire Factories' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We've already covered United Wire Factories' share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. United Wire Factories' TSR of 88% for the year exceeded its share price return, because it has paid dividends.

A Different Perspective

It's nice to see that United Wire Factories shareholders have received a total shareholder return of 88% over the last year. That's better than the annualised return of 9% 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. It's always interesting to track share price performance over the longer term. But to understand United Wire Factories better, we need to consider many other factors. Even so, be aware that United Wire Factories is showing 1 warning sign in our investment analysis , you should know about...

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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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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