Yahoo Finance Microequities Asset Management Group (ASX:MAM) shareholders have earned a 125% return over the last year
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%. For example, the Microequities Asset Management Group Limited (ASX:MAM) share price has soared 106% return in just a single year. It's also good to see the share price up 17% over the last quarter. Also impressive, the stock is up 87% over three years, making long term shareholders happy, too.
So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.
See our latest analysis for Microequities Asset Management Group
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the last year Microequities Asset Management Group grew its earnings per share (EPS) by 320%. This EPS growth is significantly higher than the 106% increase in the share price. Therefore, it seems the market isn't as excited about Microequities Asset Management Group as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 8.98.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Microequities Asset Management Group's earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Microequities Asset Management Group the TSR over the last 1 year was 125%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Pleasingly, Microequities Asset Management Group's total shareholder return last year was 125%. That's including the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 31%. The improving returns to shareholders suggests the stock is becoming more popular with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Microequities Asset Management Group , and understanding them should be part of your investment process.
Microequities Asset Management Group is not the only stock that insiders are buying. 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.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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