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SKELUP HOLDINGS LIMITED. (NZSE:SKL) shareholders may be concerned after seeing the share price drop 16% in the last quarter. However, the fact remains that the returns over the past five years have been satisfactory. His 97% return definitely beats the market return.
Let’s look at the underlying fundamentals over the long term and see if they are aligned with shareholder returns.
Check out our latest analysis for Skelup Holdings.
To paraphrase Benjamin Graham, in the short term the market is a voting machine, but in the long term it is a weighing machine. One way he looks at how market sentiment has changed over time is to look at the interaction between a company’s share price and his earnings per share (EPS).
During the five-year period of share price growth, Skelup Holdings achieved compound earnings per share (EPS) growth of 11% per year. This EPS growth rate is lower than the average annual increase in the share price of 15%. So it’s fair to think the market has a higher valuation for this business than it did five years ago. This isn’t necessarily surprising, given its track record of profit growth over the past five years.
You can see below how EPS has changed over time (unveil the exact values by clicking on the image).
It might be well worth taking a look at ours free Skellerup Holdings earnings, revenue and cash flow report.
What will happen to the dividend?
It’s important to consider not only the share price return, but also the total shareholder return for a particular stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital increases and spin-offs. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that Skellerup Holdings’ TSR over the last five years was 151%, which is better than the share price return mentioned above. This is primarily due to dividend payments.
different perspective
While the broader market has gained about 0.4% in the last year, Skelup Holdings shareholders have lost 8.6% (including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Long-term investors won’t be too perturbed, as they can earn 20% annually over five years. The recent selloff could be an opportunity, so it might be worth checking the fundamental data for signs of a long-term growth trend. 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. To do so, you need to know the following: 1 warning sign We found it at Skellerup Holdings.
However, please note: Skelup Holdings may not be the best stock to buy.So take a look at this free A list of interesting companies that have grown their earnings in the past (and are predicted to grow in the future).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on New Zealand exchanges.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
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