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If You Had Bought Euronav (EBR:EURN) Shares A Year Ago You'd Have Made 25%

Euronav NV (EBR:EURN) shareholders have seen the share price descend 13% over the month. But looking back over the last year, the returns have actually been rather pleasing! Looking at the full year, the company has easily bested an index fund by gaining 25%.

View our latest analysis for Euronav

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

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During the last year Euronav grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We think that the revenue growth of 55% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

ENXTBR:EURN Income Statement, February 22nd 2020
ENXTBR:EURN Income Statement, February 22nd 2020

We know that Euronav has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on Euronav

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Euronav's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Euronav's TSR of 26% for the year exceeded its share price return, because it has paid dividends.

A Different Perspective

We're pleased to report that Euronav shareholders have received a total shareholder return of 26% over one year. And that does include the dividend. There's no doubt those recent returns are much better than the TSR loss of 0.2% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Euronav better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with Euronav (including 1 which is is a bit unpleasant) .

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on BE exchanges.

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.

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. Thank you for reading.