Shareholders Of FM Mattsson Mora Group (STO:FMM B) Must Be Happy With Their 139% Total Return

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For example, the FM Mattsson Mora Group AB (publ) (STO:FMM B) share price has soared 117% in the last three years. That sort of return is as solid as granite. It's also good to see the share price up 60% over the last quarter.

Check out our latest analysis for FM Mattsson Mora Group

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 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.

During three years of share price growth, FM Mattsson Mora Group achieved compound earnings per share growth of 5.8% per year. This EPS growth is lower than the 30% average annual increase in the share price. This indicates that the market is feeling more optimistic on the stock, after the last few years of progress. That's not necessarily surprising considering the three-year track record of earnings growth.

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

Dive deeper into FM Mattsson Mora Group's key metrics by checking this interactive graph of FM Mattsson Mora Group's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for FM Mattsson Mora Group the TSR over the last 3 years was 139%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that FM Mattsson Mora Group rewarded shareholders with a total shareholder return of 96% over the last year. That's including the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 34%. Given the track record of solid returns over varying time frames, it might be worth putting FM Mattsson Mora Group 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. Even so, be aware that FM Mattsson Mora Group is showing 2 warning signs in our investment analysis , you should know about...

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 SE 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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