For many, the most important point in investing in the stock market is to achieve spectacular returns. While not all stocks perform well when investors win, they can win big. E.g, Kopran Limited (NSE: COPENHAGEN) has generated a beautiful 327% return in just one year. Last week, the stock price softened around 1.9%. Looking further back, the share price is 74% higher than three years ago.
While markets are a strong pricing mechanism, stock prices reflect investor sentiment, not just underlying business results. By comparing earnings per. Stock (EPS) and stock price changes over time, we can get a sense of how investors’ attitudes towards a company have changed over time.
Copran was able to grow EPS by 115% in the last twelve months. The 327% share price increase certainly exceeded EPS growth. So it is reasonable to assume that the market has a higher perception of the company than it did a year ago.
You can see below how EPS has changed over time (find the exact values by clicking on the image).
It may be worth taking a look at ours for free report on Kopran’s earnings, revenue and cash flow.
What about dividends?
In addition to measuring the share price return, investors should also consider the total shareholder return (TSR). While the stock price return only reflects the change in stock price, the TSR includes the value of dividends (provided they were reinvested) and the benefit of discounted capital raising or spin-offs. Presumably, TSR provides a more comprehensive picture of the return generated by a stock. As it happens, Kopran’s TSR for the last year was 332%, which exceeds the previously mentioned share price return. And there is no premium to guess that the dividend payments largely explain the discrepancy!
It is nice to see that Kopran shareholders have received a total shareholder return of 332% over the last year. And that also includes the dividend. It is better than the annual return of 23% over half a decade, which suggests that the company is doing better recently. A person with an optimistic perspective could look at the recent improvement of TSR as a sign that the company itself is getting better with time. While it is worth considering the various effects that market conditions may have on the stock price, there are other factors that are even more important. Consider, for example, the ever-present ghost of investment risk. We have identified two warning signs with Kopran and understanding them should be part of your investment process.
We would like Kopran better if we see some big insider purchases. While we wait, check this out for free list of growing companies with significant, recent insider purchases.
Note that the market return quoted in this article reflects the market-weighted average return on equities currently traded on IN exchanges.
If you want to trade with Kopran, open an account with the lowest * platform that professionals trust, Interactive brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by basic data. Please note that our analysis may not include the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in the mentioned stocks.
*Interactive brokers rated broker with lowest price by StockBrokers.com Annual online review 2020
Do you have feedback on this article? Worried about the content? Contact us with us directly. Alternatively, you can email the editorial team (at) simplywallst.com.
More Tags We Lovehow to get covered california insurance what is a good rate for car insurance what are the top 10 insurance companies in the us top auto insurance companies in canada 2019 how to report someone for car insurance auto insurance cost cheapest which insurance company will cover covid 19 which auto insurance company has the best rates insurance cost for new drivers uk 10 worst auto insurance companies in america