Stock Analysis

The Abdullah Saad Mohammed Abo Moati Stationaries (TADAWUL:4191) Share Price Has Soared 331%, Delighting Many Shareholders

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We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. Not every pick can be a winner, but when you pick the right stock, you can win big. Take, for example, the Abdullah Saad Mohammed Abo Moati Stationaries Company (TADAWUL:4191) share price, which skyrocketed 331% over three years. Also pleasing for shareholders was the 67% gain in the last three months.

See our latest analysis for Abdullah Saad Mohammed Abo Moati Stationaries

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over the last three years, Abdullah Saad Mohammed Abo Moati Stationaries failed to grow earnings per share, which fell 18% (annualized).

This means it's unlikely the market is judging the company based on earnings growth. Therefore, we think it's worth considering other metrics as well.

The revenue drop of 5.7% is as underwhelming as some politicians. The only thing that's clear is there is low correlation between Abdullah Saad Mohammed Abo Moati Stationaries' share price and its historic fundamental data. Further research may be required!

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

SASE:4191 Earnings and Revenue Growth January 15th 2021

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What about the Total Shareholder Return (TSR)?

We've already covered Abdullah Saad Mohammed Abo Moati Stationaries' 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. Abdullah Saad Mohammed Abo Moati Stationaries hasn't been paying dividends, but its TSR of 338% exceeds its share price return of 331%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

Pleasingly, Abdullah Saad Mohammed Abo Moati Stationaries' total shareholder return last year was 198%. That's better than the annualized TSR of 64% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Abdullah Saad Mohammed Abo Moati Stationaries on your watchlist. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Abdullah Saad Mohammed Abo Moati Stationaries (of which 1 shouldn't be ignored!) you should know about.

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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Find out whether Abdullah Saad Mohammed Abo Moati for Bookstores 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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