Yahoo Finance Should Napier Port Holdings (NZSE:NPH) Be Disappointed With Their 21% Profit?
A diverse portfolio of stocks will always have winners and losers. Of course, in an ideal world, all your stocks would beat the market. One such company is Napier Port Holdings Limited (NZSE:NPH), which saw its share price increase 21% in the last year, slightly above the market return of around 19% (not including dividends). We'll need to follow Napier Port Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
See our latest analysis for Napier Port Holdings
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.
Napier Port Holdings was able to grow EPS by 94% in the last twelve months. This EPS growth is significantly higher than the 21% increase in the share price. So it seems like the market has cooled on Napier Port Holdings, despite the growth. Interesting.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We know that Napier Port Holdings has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Napier Port Holdings, it has a TSR of 23% for the last year. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Napier Port Holdings shareholders have gained 23% over twelve months (even including dividends), which isn't far from the market return of 23%. However, the price gains have plateaued recently, with the share price up a relatively weak 0.6% in the last quarter or so. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). If you would like to research Napier Port Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
Of course Napier Port Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NZ exchanges.
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. 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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