If You Had Bought MTN Zakhele Futhi (RF) (JSE:MTNZF) Shares A Year Ago You'd Have Earned 34% Returns

It's been a soft week for MTN Zakhele Futhi (RF) Limited (JSE:MTNZF) shares, which are down 14%. But at least the stock is up over the last year. However, its return of 34% does fall short of the market return of, 35%.

View our latest analysis for MTN Zakhele Futhi (RF)

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).

Over the last twelve months, MTN Zakhele Futhi (RF) actually shrank its EPS by 83%.

This means it's unlikely the market is judging the company based on earnings growth. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.

However the year on year revenue growth of 10.0% would help. We do see some companies suppress earnings in order to accelerate revenue growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

MTN Zakhele Futhi (RF) shareholders have gained 34% over twelve months, which isn't far from the market return of 35%. A substantial portion of that gain has come in the last three months, with the stock up 10% in that time. It could be that word is spreading about its positive business attributes. 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 4 warning signs for MTN Zakhele Futhi (RF) (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 ZA 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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