Yahoo Finance Can You Imagine How Chuffed IPH's (ASX:IPH) Shareholders Feel About Its 103% Share Price Gain?
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Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. Take, for example IPH Limited (ASX:IPH). Its share price is already up an impressive 103% in the last twelve months. Also pleasing for shareholders was the 30% gain in the last three months. The longer term returns have not been as good, with the stock price only 13% higher than it was three years ago.
See our latest analysis for IPH
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).
During the last year IPH grew its earnings per share (EPS) by 9.7%. The share price gain of 103% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
This free interactive report on IPH's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for IPH the TSR over the last year was 111%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
It's nice to see that IPH shareholders have gained 111% (in total) over the last year. That's including the dividend. That gain actually surpasses the 9.1% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting IPH on your watchlist. Keeping this in mind, a solid next step might be to take a look at IPH's dividend track record. This free interactive graph is a great place to start.
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.
