After buying stock in a company, the worst outcome (assuming no leverage) is to lose all the money you put into it. But if you buy stock in a really great company, here's what happens. more than double your money. In other words, Dynamac Holdings Co., Ltd. (SGX:NO4)'s share price has increased by 271% over the past three years. What a joy for those who owned stocks! It rose 16% in about a month.
With that in mind, it's worth checking whether a company's underlying fundamentals are driving its long-term performance, or if there are any discrepancies.
Check out our latest analysis for Dyna-Mac Holdings.
in his essay Graham & Doddsville SuperInvestors Warren Buffett explained that stock prices do not always rationally reflect the value of a company. One imperfect but simple way to consider how the market perception of a company has changed is to compare the change in the earnings per share (EPS) with the share price movement.
Dynamac Holdings has been profitable for the past three years. Given the importance of this milestone, it's not too surprising that the stock price has risen significantly.
The company's earnings per share (long-term) are depicted in the image below (click to see the exact numbers).
It is of course great to see that Dynamac Holdings has grown its profits over the years, but the future is even more important to shareholders.this free This interactive report on Dyna-Mac Holdings's balance sheet strength is a great starting point, if you want to investigate the stock further.
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 incorporates the value of any spin-offs or discounted capital raisings, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often much higher than the share price return. Coincidentally, Dynamac Holdings' TSR over the last three years was 275%, which is better than the share price return mentioned above. This is primarily due to dividend payments.
different perspective
It's good to see that Dyna-Mac Holdings delivered a total shareholder return of 88% over the last twelve months. Of course, this includes dividends. This is better than the 29% annualized return over the past five years, suggesting that the company has performed well of late. Optimists might think that the recent improvement in TSR indicates that the business itself is improving over time. Is Dynamac Holdings cheaper than other companies? These three rating scales may help you decide.
We would further like Dynamac Holdings if we see significant insider buying.While you wait, check this out free A list of growing companies with significant recent insider purchasing.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singapore 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.
