Yahoo Finance If You Had Bought Apollo Tourism & Leisure (ASX:ATL) Stock A Year Ago, You'd Be Sitting On A 51% Loss, Today
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The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Apollo Tourism & Leisure Ltd (ASX:ATL) share price slid 51% over twelve months. That contrasts poorly with the market return of 13%. We wouldn't rush to judgement on Apollo Tourism & Leisure because we don't have a long term history to look at. The falls have accelerated recently, with the share price down 28% in the last three months.
Check out our latest analysis for Apollo Tourism & Leisure
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Unhappily, Apollo Tourism & Leisure had to report a 39% decline in EPS over the last year. This reduction in EPS is not as bad as the 51% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business. The less favorable sentiment is reflected in its current P/E ratio of 8.17.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It might be well worthwhile taking a look at our free report on Apollo Tourism & Leisure's earnings, revenue and cash flow.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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 raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Apollo Tourism & Leisure, it has a TSR of -49% for the last year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
While Apollo Tourism & Leisure shareholders are down 49% for the year (even including dividends), the market itself is up 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 28% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. If you would like to research Apollo Tourism & Leisure in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
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 AU exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
