The Yamama Saudi Cement (TADAWUL:3020) Share Price Is Up 76% And Shareholders Are Holding On

One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowess, you can make superior returns. Just take a look at Yamama Saudi Cement Company (TADAWUL:3020), which is up 76%, over three years, soundly beating the market return of 17% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 7.0% in the last year , including dividends .

Check out our latest analysis for Yamama Saudi Cement

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

Yamama Saudi Cement was able to grow its EPS at 37% per year over three years, sending the share price higher. This EPS growth is higher than the 21% average annual increase in the share price. Therefore, it seems the market has moderated its expectations for growth, somewhat.

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

We know that Yamama Saudi Cement has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Yamama Saudi Cement's balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Yamama Saudi Cement's total shareholder return (TSR) and its share price change, which we've covered above. 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. Its history of dividend payouts mean that Yamama Saudi Cement's TSR of 81% over the last 3 years is better than the share price return.

A Different Perspective

We're pleased to report that Yamama Saudi Cement shareholders have received a total shareholder return of 7.0% over one year. That gain is better than the annual TSR over five years, which is 4%. Therefore it seems like sentiment around the company has been positive lately. 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 Yamama Saudi Cement better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Yamama Saudi Cement you should be aware of, and 1 of them is a bit concerning.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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